RBI MPC Meet: Nifty Bank Stages Marginal Recovery Before Slumping
Despite an initial rebound, Nifty Bank quickly resumed their downward trend, falling from 0.33% to 0.94% lower.
Nifty Bank saw a marginal recovery after RBI Governor Sanjay Malhotra announced a 25 bps cut in the central bank's lending rate. Moreover, the Monetary Policy Committee also changed its stance from 'neutral' to 'accommodative'.
The bank index fell as much as 0.54% on Wednesday, before the RBI MPC's announcement. It pared loss to trade 0.33% lower before slumping further by 0.94%, crossing the day's low.
Among the notable movements, AU Small Finance Bank Ltd. saw an intraday high of 1.17%, before dropping to a low of 1.03%.
Axis Bank Ltd. reached a high of 0.37% but later declined by 1.71%. Similarly, Bank of Baroda Ltd. experienced a minimal high of 0.02% before falling 1.75%.
Canara Bank Ltd. had a high of 0.86% but slumped 1.77%. Federal Bank Ltd. managed a high of 0.4% but slumped 0.72%.
HDFC Bank Ltd. saw a high of 0.33% before dipping 0.5%. ICICI Bank shares rose 0.39%, but later dropped to 0.92%.
IDFC First Bank Ltd. fell 1% before recovering a little to trade 0.16% higher, while IndusInd Bank Ltd. saw a high of 0.54% before declining to 1.09%.
Kotak Mahindra Bank Ltd. rose 0.4% but declined 0.48%., PNB stock saw 0.17% increase, before falling 1.32% and SBI Ltd. dropped 1.57%.
The accommodative stance and rate cut are aimed at supporting growth, but the immediate impact on banking stocks suggests that broader economic concerns and global trade uncertainties continue to weigh heavily on market sentiment.
