Markets surged on the back of Repo and Reverse Repo remained unchanged by RBI. RBI hikes CRR by 25 bps to 8.25%. RBI leaves Repo, Reverse Repo rates unchanged. It aims at 4-4.5% inflation going forward. It is attempting to bring down inflation to 5.5% in FY09.

On back of much expected policy change banking stock surged ahead of its expectation. Banking index was up about 3.24% from it’s intra day low and was trading firm. The rally was lead by front runner stocks like ICICI Bank, Kotak Bank, Union Bank which were up 8.32%, 77.7% and 5.90% respectively in todays trade.

Other banking stocks like SBI, PnB, BoB, Yes Bank, Axis bank which were any where up between 5% to 2% in today’s trade.

 Banking stcok in today trade at 12.56pm