RBI MPC meeting outcome: Sensex reclaims 60000-mount, Nifty near 18000; banking and financial service stocks trade mute

The markets reacted positively minutes after the Reserve Bank of India’s policy decision, as the Sensex reclaimed 60000-mount, while Nifty inched near 18000-mark in the early morning trade on Friday. 

The six-member RBI’s Monetary Policy Committee, headed by Governor Shaktikanta Das, has decided to maintain the Repo Rate at 4 per cent and kept Reverse Repo Rate unchanged at 3.35 per cent in October policy. The central bank continues to maintain the Accommodative stance. 

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RBI Governor said, “Inflation trajectory more favourable than was anticipated and high-frequency indicators suggest economic activity has gained momentum, while core inflation remains sticky.” 

The central bank’s policy decision impacts most to the banking and financial service stocks as both of them are trading mute on the exchanges. Nifty Financial Services index is flat with negative bias and Nifty Bank is marginally up 0.2 per cent on the NSE intraday trade on Friday. 

As many as 7 stocks are gaining, while 4 are declining with one remained unchanged on Nifty Bank index in the early morning trade. Similarly, at least 13 are advancing and 7 declining on the financial service index. 

Banking heavyweights such as SBI and IndusInd Bank are trading flat with negative bias, whereas HDFC Bank, ICICI Bank, Kotak Bank and Axis Bank are flat too with positive bias.  

Bandhan Bank shares surging most of all in the banking index up almost 3 per cent, followed by AU Small Finance Bank up 1.5 per cent and RBL Bank up around 1 per cent in the early morning trade. 

Similarly, financial majors such as HDFC, Bajaj twins, are also trading flat, the former with negative bias and the latter with positive. SBI Life, HDFC Life and HDFC AMC are gaining most on the financial services index between 0.3-0.6 per cent ahead of policy meet today.