Banking Stocks Rallies After RBI's Rates Decision; Bank Nifty Up 547 Pts, Nifty PSU Bank Up 2%; Top Gainers

RBI's latest status quo in repo rate to 6.5% for the tenth time in a row, breathed a sudden life in banking stocks on Wednesday, October 9, 2024. The majority of banking stocks with PSU lenders outperforming are on a bull run. Bank Nifty gained by over 547 points, while Nifty PSU Bank rallied by 2%. Nifty Private Bank is up by nearly a per cent.

Nifty Bank gained by 547.2 points to touch an intraday high of 51,568.20, after RBI's October 2024 policy outcomes. Currently, the index surged by 533.85 points or 1.05% to trade at 51,554.85.

Meanwhile, Nifty PSU Bank climbed by 1.85% to touch an intraday high of 6,701.90. Currently, the index is up by 115.70 points or 1.76% to trade at 6,701.90. Stocks like Central Bank, PCSB, Union Bank, and UCO Bank gained by 2% to 3.5%.

Furthermore, Nifty Private Bank soared by nearly 272 points or 1.07% to hit an intraday high of 25,639.50. While currently, the index traded at 25,589.10, up by 221.45 points or 0.87%.

Top performers are - SBI up by 2.8%, followed by Axis Bank and Punjab National Bank (PNB) which jumped by 2.3% and 1.9%. Meanwhile, ICICI Bank and Canara Bank gained by 1.5% and 1% respectively.

Also, stocks like Bank of Baroda, and IndusInd Bank advanced by nearly 1%. Other stocks like HDFC Bank, AU Small Finance Bank, and IDFC First Bank are marginally up.

On the other hand, IDFC First Bank and Federal Bank were down, but gradually.

RBI governor Shaktikanta Das said that India's banking sector remains stable.

In the early hours of Wednesday, RBi kept key interest rates of the country, unchanged for the tenth time in a row, on Wednesday, October 9, 2024. The decision received majority votes from the six-member MPC, with 5:1. However, RBI turned dovish, by changing its monetary policy stance to 'Neutral' from its earlier hawkish outlook of 'Withdrawal Of Accommodation'.