Investors are keenly awaiting the outcome of the Reserve Bank of India's repo rate decision in its first Monetary Policy Committee meeting which is scheduled to be announced later at 2:30 pm today.
Investors are keenly awaiting the outcome of the Reserve Bank of India’s repo rate decision in its first Monetary Policy Committee meeting which is scheduled to be announced later at 2:30 pm today. Following the decision on the key benchmark repo rates, the rate-sensitive stocks rallied up to 4% on Thursday with shares of India’s third-largest lender ICICI Bank and Country’s banking behemoth State Bank of India rising more than 2%. All the components of the banking sector indices viz Nifty Bank, Nifty PSU Bank and Nifty Private Bank were trading in positive territory.
Shares of the state-run Bank of India emerged as the top gainers among the benchmark Nifty PSU Bank index. The stock of Bank of India advanced as high as 4.83% to a day’s peak of Rs 108.45 on NSE. Other PSU bank shares which also surged phenomenally include Canara Bank (up 3.18%), Allahabad Bank (up 3.15%), Bank of Baroda (up 3.11%), Syndicate Bank (up 3.09%), IDBI Bank (up 3%), Union Bank of India (up 2.72%), Andhra Bank (up 2.48%), State Bank of India (up 2.3%), Oriental Bank of Commerce (up 2.27%), Indian Bank (up 2.01%) and Punjab National Bank (up 1.85%).
Among the private banking players, shares of ICICI Bank jumped the most leading the Nifty Private Bank index. The stock of ICICI Bank rose as much as 3.35% to a day’s high of Rs 277.65. The surge in the shares of private bankers was followed by IDFC Bank, Yes Bank, IndusInd Bank, RBL Bank, Kotak Mahindra Bank, South Indian Bank, Federal Bank, Axis Bank and HDFC Bank. All the private banking scrips other than ICICI Bank rose up to 3%. Due to a huge surge in the banking shares, the key index Nifty Bank surged 392 points to a day’s high of 24,521.7 on Thursday.
The Reserve Bank of India chaired by the governor Urijit Patel is all set to conclude its six-member tw0-day bi-monthly policy meeting and to announce the decision on the repo rates today. This Monetary Policy Committee meeting is the first policy meet in the financial year 2018-2019. The MPC has kept the benchmark lending rates unchanged since the last three meetings.