Bank stocks in action after RBI hikes repo rate by 50 bps

30 Sep 2022 , 10:26 AM

The meeting of the RBI Monetary Policy Committee (MPC) started on Wednesday (28 September), and RBI Governor Shaktikanta Das on Friday (30 September) announced that the MPC voted with 5-1 majority to increase repo rate by 50 bps to 5.9%. Das said that inflation continues to be at alarming high levels across jurisdictions. Economic activity in India remains stable. It gives us confidence to deal with aggressive policies of other central banks, he added. FY23 CPI inflation is retained at 6.7%. FY23 real GDP growth is seen at 7% from 7.2% earlier, he said. Following the rate-hike announcement, the Nifty Bank index was up 0.18% to 37,715.05 while the benchmark Nifty 50 index was down 0.03% to 16,813.40. Kotak Mahindra Bank (up 1.22%), PNB (up 1.15%), HDFC Bank (up 0.76%), ICICI Bank (up 0.43%), Bandhan Bank (up 0.29%) and Axis Bank (up 0.08%) advanced. Bank of Baroda (down 0.31%), IndusInd Bank (down 0.59%), IDFC First Bank (down 0.63%), SBI (down 0.65%), Federal Bank (down 0.8%) and AU Small Finance Bank (down 1.42%) declined. In the bond market, the yield on Indias 10-year benchmark federal paper rose to 7.4002 compared with 7.34 at close in the previous trading session. In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 81.59, compared with its close of 81.735 during the previous trading session. Powered by Capital Market – Live News