By Aditya Raghunath
Investing.com -- It was a good day for Nifty Bank . The index gained 490 points or 1.51%, over the broader market’s 0.92%, to close at 32,991. There were no losers on the Bank Nifty today.
IDFC (NS: IDFC ) First Bank Ltd (NS: IDFB ) gained the most, closing up 4.16%, followed by Bandhan Bank Ltd (NS: BANH ) at 3.35%. Federal Bank Ltd. (NS: FED ), State Bank Of India (NS: SBI ), and IndusInd Bank Ltd. (NS: INBK ) all gained over 2% each.
It was the same scenario with the Nifty PSU Bank that closed up 1.95%, and Financial Services Index that closed up 1.19%.
A big reason for this is that the RBI maintained its dovish stance on monetary policy and didn’t raise rates today. Analysts and experts had expected that the RBI’s MPC (Monetary Policy Committee) would not change rates and that is exactly what happened. RBI Governor Shaktikanta Das said, “The accommodative policy stance will continue for as long as necessary.”
The RBI has said that it will ensure ample liquidity in the system and that it will try to rein in inflation at 5% levels.
Analysts have said that stocks like HDFC Bank Ltd (NS: HDBK ), SBI, ICICI Bank Ltd (NS: ICBK ) and Bajaj Finance Ltd (NS: BJFN ) in the banking and financial space can be looked at for short-term gains.
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With recent Supreme court judgment of No interest on interest for Lockdown period, slowly no investor would have interest in Bank stocks as they may have to reverse Interest Income accrued.Like 0