The Nifty PSU Bank index spurted 3% in Monday’s afternoon trades amid heavy buying in J&K Bank, Bank of Baroda, Syndicate Bank, Punjab National Bank (PNB), and Union Bank.
Further, investors are also waiting for the Reserve Bank of India to release its policy decision. The six-member Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das will meet for three days in Mumbai and announce the decision on the interest rate on April 4. Market Participants are widely expecting the central bank to cut its key interest rates to boost the economy. It would be the first bi-monthly monetary policy of 2019-20.
Shares of J&K Ban
k, which gained 9%, were leading the index’s gain. Shares of Bank of Baroda
and Syndicate Bank
also contributed to the gain, rising 5% each.
Shares of Bank of Baroda jumped after the bank turned as India’s second largest Public Sector Bank behind State Bank of India (SBI)
effective today. The Reserve Bank had on Saturday said branches of Dena Bank and Vijaya Bank would function as BoB outlets from April following the amalgamation.
Shares of PNB climbed 4% and those of Union Bank
, Bank of India
, Canara Bank
, and Allahabad Bank
gained 3% each.
Meanwhile, equity benchmark indices were trading in the green with the Sensex rising 311 points at 38,983 levels. The Nifty also gained 84 points at 11,708 levels.