Banking stocks are in focus as investors await key developments from the Reserve Bank of India in the bi-monthly monetary policy that is scheduled for tomorrow.
On Thursday trade, Bank Nifty traded in a volatile session led by a broad-based selloff. Heavyweights Kotak Bank and HDFC Bank limited the losses, however, could not pull the index back into the green zone due to massive selling pressure in SBI, IndusInd Bank and ICICI Bank.
At around 2.04 PM, Bank Nifty is trading at 35,981.40 down by 46.65 points or 0.13%. The index has touched an intraday high and low of 36,115.45 and 35,661.30 respectively.
Heavyweights Kotak Bank and
HDFC Bank were top gainers soaring by 2.1% and 1.8% respectively. Bandhan Bank traded marginally up.
On the other hand, IDFC First Bank was the top bear plunging by nearly 6%.
However, major stocks like
SBI dived nearly 3% after June 2021 quarterly result. SBI reported its highest quarterly net profit of Rs6,504cr rising by a whopping 55.25% in Q1FY22 against Rs4,189cr a year ago same period. The Q1 PAT rose marginally by 0.83% from Rs6,451cr of the preceding quarter. Net interest income stood at Rs27,638cr in the quarter under review, rising by 3.74% yoy and 2.11% QoQ. The net interest margin was at 3.15% for the quarter.
Furthermore, on the index, Federal Bank and IndusInd Bank dived more than 2% each. RBL Bank slipped 1.5%, while PNB and ICICI Bank dipped over 1% each.
AU Small Finance Bank and Axis Bank were marginally down.
Markets participants are expecting another status quo in policy interest rates as inflation pressure concerns still pertain from the second wave of the pandemic. It is expected that RBI will hold on to a 4% repo rate as there is little room to move about monetary policies broadly on a global front as higher commodity prices and increasing global rates amid the Covid-19 recovery bequeaths serious implications on production costs. Also, a possible third wave trajectory in the coming months leaves no choice but to have a wait and watch method.