Bank Stocks Rise Marginally Ahead Of RBI Policy Review; Tread With Caution, Say Experts

Banking stocks on Wednesday traded mixed ahead of the outcome of the Reserve Bank of India (RBI)'s interest-rate setting meet. "The current chart structure of Bank Nifty suggests that it is oscillating in escalating channels wherein intermediate support is placed near 26,000 marks. If bears manage to surpass the 26,000 mark, we may see a further fall towards 25,500 level. Traders are advised to be cautious on the higher level and place proper risk management," said Dyaneshwar Padwal -AVP Technical Analyst, KIFS Trade Capital.

At 10:51 am, the S&P BSE Bankex traded marginally higher at 29,315.42 with a gain of 23.20 points or 0.08 per cent. Punjab National Bank gained 1.39 per cent, State Bank of India 0.85 per cent, Bank of Baroda 0.70 per cent, Kotak Mahindra Bank 0.45 per cent, Axis Bank 0.42 per cent, Federal Bank 0.36 per cent and YES Bank 0.06 per cent. IndusInd Bank with a loss of 0.21 per cent, ICICI Bank (down 0.30 per cent), and HDFC Bank (0.27 per cent) were the top losers in the pack.

At 10:55 am, the National Stock Exchange (NSE)'s Nifty Bank index traded at 26,252.50, with a gain of 1.50 points or 0.01 per cent. Nine out of 12 stocks traded in the green while three traded in the red.

In the monetary policy statement, the RBI is likely to adopt a hawkish tone but is not expected to raise interest rates in this meet, said experts.

Meanwhile, at 10:57 am, the S&P BSE Sensex reclaimed the 35,000-mark at 35,009.02 level with a gain of 105.81 points or 0.30 per cent. The broader Nifty50 benchmark of the NSE was firm above the 10,600 level at 10,632.65 with a gain of 39.50 points or 0.37 per cent. Thirty three out of 50 stocks traded with gains in the 50-share index.

Asian markets were trading mixed tracking cues from Wall Street overnight. Japan's Nikkei traded higher by 0.13 per cent, Hong Kong's Hang Seng traded lower by 0.32 per cent while China's Shanghai Composite Index was lower by 0.24 per cent.

In the forex market, the rupee gained as much as 15 paise in morning deals and was nearing the 66 level against the US dollar.

Source - NDTV 

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