Banking stocks gain after RBI cuts interest rates by 75 bps, CRR to 3%; IndusInd Bank, Axis Bank, SBI top gainers
The Bank Nifty along with the Nifty PSU Bank index jumped 7-8 percent in the morning trade.
March 27, 2020 / 10:38 AM IST
Indian shares opened higher on March 27, with the Nifty opening above the psychologically important 9,000-mark. But the market is trading at day's low with Sensex up 518.45 points or 1.73 percent at 30465.22, and the Nifty gained 215.65 points or 2.5 percent at 8857.10 at 10:15 hrs IST.
Reserve Bank of India reduced repo rate by 75 basis points to 4.4 percent. MPC voted for a sizable reduction in Repo Rate and maintaining Accommodative Stance. There were some differences in quantum of reduction and MPC voted by 4:2 majority to reduce policy repo rate by 75 bps to 4.4 percent, the RBI Governor said in the press meet.
Among the sectors, the Bank Nifty outperformed all other indices, gaining over 6 percent.
The RBI's press conference comes a day after Finance Minister Nirmala Sitharaman announced a Rs 1.07 lakh crore relief package for the poor.
The economy has been battered by COVID-19 and governments across the globe have taken measure to combat the impact. While the finance minister's announcements were a mix of measures, including direct cash transfers and distribution of free food grains for three months to help the economically weaker sections, the RBI governor is expected provide some relief to corporate India as well.
The top gainers included Axis Bank and IndusInd Bank being the top gainers, jumping 9-11 percent each. They were followed by IDFC First Bank, RBL Bank, YES Bank, Kotak Mahindra Bank and HDFC Bank.
Among the PSU banking names, State Bank of India jumped 6 percent followed by Union Bank of India, Indian Bank, Bank of India, Punjab National Bank and Canara Bank.Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.