Bank stock gains ahead of RBI policy

The Nifty Bank index was trading with gains of more than one per cent point, ahead of the RBI policy meet on February 7-8. Street is anticipating a rate cut of 0.25 basis points from the central bank.

There were several banking names which hit their new 52-week high on the backdrop of strong rally which the banking index has witnessed in the past two weeks. Nifty Bank has gained more than 5 per cent in the past five trading sessions supported by the major banks like SBI, HDFC Bank and ICICI Bank.

The rate cut will further help banks which are already flushed with cheap money post-demonetisation deposits. The repo rate cut would make funds cheaper and help banks in transmitting those rates to borrowers.

Currently, the inflation is in RBI's target range and in order to push growth and revive consumption in the economy, rate cut would be a strong message to the private sector and investors. 

Top Gainers:-

ICICI Bank- Rs 291.35 (up 3.50%)
Axis Bank- Rs 497.85 (up 1.40%)
Induslnd Bank- Rs 1316.10 (up 1.1%)
Canara Bank- Rs 312.80 (up 0.60%)
SBI- Rs 278.75 (up 0.50%)