The Nifty PSU bank index was up 2.3 percent, while Nifty bank index also was trading with 1 percent gain
Shares of banks and NBFCs (non-banking financial companies) continued their upward momentum on December 13 as the share prices rose around 1-6 percent on the hope of a possible rate cut by RBI in the upcoming policy meet.
As the CPI inflation eased to 2.33 percent and core CPI inflation at 5.73 percent in November 18, Soumya Kanti Ghosh, Group Chief Economic Adviser of SBI expects a change in stance by RBI in February policy and a possible rate cut in April policy that could be incrementally larger than 25 basis points.
Meanwhile, the growth in IIP for October is heartening. However, IIP growth may moderate in the coming months as base effect takes over and a possible slowdown in credit growth.
The NBFC stocks including Mahindra & Mahindra Financial Services, Edelweiss Financial Services, IIFL Holdings, Shriram Transport Finance Corporation, Indiabulls Housing Finance were trading higher with upto 6 percent intraday gain.
Also, the banking stocks including Federal Bank, Bank of Baroda, HDFC Bank, SBI, Yes Bank, RBL Bank were trading with an intraday gain of 1-4 percent at the time of writing this article.
The Nifty PSU bank index was up 2.3 percent, while Nifty bank index also was trading with 1 percent gain.
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