Nifty Bank -; Financial Services surge after RBI policy outcome; Kotak Bank, HDFC twins, Federal Bank lead gains

10 Feb 2022 , 11:50 AM

Nifty Bank and Financial Services continued the winning streak on Thursday and rose further after RBI maintained the status quo in line with streets expectations. The indexes gained around 1% with Financial stocks advancing 1.5% and PSU Bank stocks were subdued in gains.

Kotak Bank, HDFC twins (HDFC and HDFC Bank), and Federal Bank were the top gainers while PNB and ICICI Lombard were under pressure. Today is also the day of the weekly F&O expiry.

The domestic equity barometers reversed losses in morning trade after  RBI kept the policy repo rate unchanged in the last monetary policy for FY22. Markets also tracked Asian cues that witnessed a broad-based marginal upside with exceptions of Hong Kong and Chinese shares as key focus shifts on US inflation data which is expected to give more clarity on monetary policy tightening.

At around 11.50 am, BSE Sensex was trading at 58,964.53 up 498.56 points or 0.85% and Nifty50 at 17,607.80 up 144.00 points or 0.82%. Nifty Bank was trading at 39,102.70 up 492.45 points or 1.28% and Private Bank at 19,720.85 up 241.15 points or 1.24%. Nifty Financial Services was at 18,129.70 up 269.35 points or 1.51%. PSU Bank stocks were steady at 3,034.25 up 8.25 points or 0.27%.

RBI’s Monetary Policy Committee on Thursday decided to keep the key interest rates on hold.The MPC voted unanimously to keep the repo rate unchanged at 4 percent and voted 5:1 to continue with an ‘accommodative’ stance for as long as necessary to revive growth on a sustainable basis. and weekly derivative contract expiry.

Kotak Bank rose 2.7% at Rs1,884.45 per piece. HDFC Bank also advanced 2.05% at Rs1,528.30 per piece. Federal bank was also nearly 2% higher at Rs104.15 per piece. State Bank of India and Axis Bank also gained over 1% respectively. HDFC was also over 2.7% at Rs2,501.80 per piece.

ICICI Lombard shed 1.34% and PNB was also under pressure.