Bank Nifty logs super rally, index tops 760 pts; SBI, HDFC Bank, IndusInd, Axis Bank, Kotak shine

The index today hovered between an intraday high and low of 37,739.60 and 37,216.15 respectively. On the index, all the stocks listed were trading on a bullish note higher by 0.5-3%.

Sep 23, 2021 12:09 IST India Infoline News Service

Business growth, bull
Bank Nifty witnessed a super rally on Thursday after traders reacted to a hawkish tilt by the U.S. Federal Reserve in their latest policy. Indian banking stocks outlook is robust as they are expected to outperform Nifty in the near term due to bad bank announcement that is seen to boost sentiments. Furthermore, the sector will be in focus ahead of the RBI's policy next month.

The index today hovered between an intraday high and low of 37,739.60 and 37,216.15 respectively.

At around 12.19 pm, Bank Nifty was trading at 37,706.25 higher by 761.60 points or 2.06%. On the index, all the stocks listed were trading on a bullish note higher by 0.5-3%.

Axis Bank was the top gainer soaring 3.2% followed by SBI and IndusInd Bank advancing 2.3% each. ICICI Bank and AU Small Finance Bank zoomed more than 2% each.

HDFC Bank jumped 1.8%, while Bandhan Bank and Kotal Bank surged 1.7% and 1.5% respectively. PNB gained more than 1%.

Federal Bank and IDFC First Bank advanced over 0.6% and 0.5% respectively.

While addressing the National Management Convention of the All India Management Association (AIMA), the Reserve Bank of India (RBI) governor Shaktikanta Das said that in the post-pandemic world, India’s prospects are underpinned by several dynamic sectors. He said that a dynamic and resilient financial system is at the root of a stronger economy. India’s financial system has transformed rapidly to support the growing needs of the economy. While banks have been the primary channels of credit in the economy, recent trends suggest an increasing role of non-bank funding channels. Assets of non-bank financial intermediaries like NBFCs and mutual funds have been growing; funding through market instruments like corporate bonds has also been increasing.

He added further that this is a sign of a steadily maturing financial system – moving from a bank-dominated financial system to a hybrid one. Substantial progress has been made to fortify the internal defence mechanism of financial institutions to identify, measure and mitigate risks. This is a continuing process and efforts by all stakeholders have to be sustained.

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