Nifty Bank, Nifty Financial Services: Rate sensitive indices jump over 2.5% after RBI’s rate hike decision

Rate sensitive indices -- Nifty Bank and Nifty Financials on Friday surged around 2.5 per cent after Reserve Bank of India (RBI) Governor Shaktikanta Das announced the monetary policy committee decision. The RBI MPC, he said, has unanimously decided to hike key interest rates by 50 basis points in the September policy.

The indices which were volatile ahead of the rate decision announcement were up by more than 2.5 per cent each at 1:40 PM, according to data on the NSE website. While Nifty Bank was above 38, 600, gaining around 1000 points or 2.5 per cent, Nifty Financial Services was above 17,540, up by 2.44 per cent or 417 points.

Bank heavyweights such as ICICI Bank, Kotak Bank, and HDFC Bank gained around 1 per cent each after RBI’s announcement.

In PSU Banks, PNB gained the most by 1 per cent, followed by Bank of Baroda - up nearly 0.5 per cent.

HDFC AMC reacted positively to RBI’s rate hike news as the scrip jumped nearly 1 per cent. SBI Card was up around 1 per cent. Bajaj Finserv, SBI Life, HDFC and Muthoot Finance were also among the gainers in the Nifty Financial Services.