BankNifty down by 166 points on RBI rate hike, private banks took massive beating
BankNifty and S&P BSE Bankex have tumbled by more than 165 points right after RBI announced repo rate hike.
Things turned bleak for banking stocks when RBI announced another rate hike in the third bi-monthly monetary policy. Investors raked banking stocks on a hot coal bed, when RBI made 25 basis point hike in policy repo rate which now stands at 6.50% from previous 6.25%. Almost all stocks were trading on a negative with PSU banks taking most hit from investors.
BankNifty and S&P BSE Bankex have tumbled by more than 165 points right after RBI announced repo rate hike.
At around 1500 hours, BankNifty was trading 137.758 points or 0.50% below to 22,626.40, whereas S&P BSE Bankex was trading at 30,861.42 down by 144.54 points or 0.47%.
Also, Nifty private banks was trading at 15,536.55 down by 76.90 points or 0.49%, wheres Nifty PSU bank reversed losses and was trading at 3,203.75 up by 17.50 points or 0.55%.
Share price of Bank of Baroda on NSE performed worst compared to other banks, as it saw plunge of 3.13% with intraday low of Rs 148.65 per piece.
Other banks that saw selling pressure and tumbled heavily were - Federal Bank by 2.63%, ICICI Bank by 1.79%, HDFC Bank by 1%, Axis Bank by 2.08% and Yes Bank by 1.60%.
Among gainers, PNB share price took a lead by 3.17% at Rs 87.85 per piece. The bank interestingly has surged by nearly 4% after the policy announcement.
Meanwhile, SBI, Kotak Bank and IndusInd Bank share price gained between 0.43% to 1% .
Five out of six MPC members opted for a rate hike in policy repo rate today. The decision of the MPC is consistent with the neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth.
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