Banking, financial shares surge as RBI keeps rates unchanged; ICICI Bank, Bajaj Finance among top gainers

The banking and financial shares were in action as the Reserve Bank of India (RBI) decided to keep the key rates unchanged. The Nifty Bank and the Nifty Financial services gained 1.31 per cent and 1.39 per cent, respectively. Similarly, Sensex S&P BSE Private Banks Index rose 1.35 per cent or 188 points around the same times. The Nifty realty Index also surged 1.35 per cent after the RBI announcement.  

ICICI Bank, Bajaj Finance, Bajaj Finserv, RBL Bank, State bank of India were the top gainers as the stocks appreciated up to 3 per cent post the announcement by RBI Governor Shaktikanta Das. ICICI Bank, SBI, RBL Bank were the top gainers on the Nifty Bank and the S&P BSE Private Banks indices.  

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"The announcements were on the expected lines with inflation aligned with the target. We expect some recovery in the broader markets. We believe Bank Nifty has also gained traction over the past two withholding the support of its long term 200-day average at 35,700 levels, and there could be more upsides as the event of RBI policy is favourable," said Vikas Jain, Senior Research Analyst at Reliance Securities.  

Post the announcement, Yash Gupta, Equity Research Analyst, Angel One Ltd, was also bullish on real estate stocks and was of the view that the decision by the RBI will go on to help realty sector. "Reserve Bank of India keeping rates unchanged stance accommodative is a piece of positive news for the real-estate companies as there will be no rate hike in-home loan rates, currently, the home loan rates are between 6.5%-8%, one of the lowest home loan rates in the history. We continue with our buy call on Sobha Limited with a target price of 960," said Yash Gupta.   

Earlier, the RBI on Wednesday kept the benchmark interest rate unchanged at 4 per cent and decided to continue with its accommodative stance in the backdrop of concerns over the emergence of the new coronavirus variant Omicron.

Responding to the announcemnet, even Domestic equity benchmarks Nifty50 and the Sensex surged to day's high after the RBI decided to keep the rates unchanged and retained inflation at 5.3 per cent for the Financial Year 2022.

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