Shares in banking stocks recovered in trade following a surprise 50 basis points cut by the RBI in the Monetary policy.
Shares in ICICI Bank, which was down as much as 3 per cent in trade, was marginally down by 1 per cent, while Axis Bank was down 1.4 per cent. However, most of the PSU banking stocks like Canara Bank, State Bank of India and Punjab National Bank managed to stay resilient in a falling market.
Stocks of HDFC Bank and IndusInd Bank were trading with gains.
The Bank Nifty was marginally lower by 0.40 per cent after falling as much as 1 per cent in early trade. The RBI today surprised the market by cutting interest rate by a huge 50 basis points, as against expectations of 25 basis points in its Monetary policy Review.