Bank Nifty hits new record high, surges over 17% since Feb 1; SBI, HDFC Bank,

[NiveRoshni]

Bank Nifty hits new record high, surges over 17% since Feb 1; SBI, HDFC Bank, ICICI Bank hit 52-week high



The Reserve Bank of India monetary policy committee left interest rates unchanged as expected on Friday after data showed the economy is contracting less than expected amid softening prices.

RBI's first monetary policy committee, which met for the first after the Union Budget 2021, decided to retain an accommodative policy stance at least for the current financial year and into the next to revive growth as inflation has eased below "tolerance level of 6 percent".

The key lending rate of the RBI, or the repo rate, was left undisturbed at 4 percent while the reverse repo rate, or the key borrowing rate, was retained at 4 percent.

Bank Nifty has jumped 2 percent largely aided by the rally in PSU banks. The index has surged 17 percent since February 1 after Finance Minister Nirmala Sitharaman in Union Budget 2021-22 announced setting up 'Bad Bank'.

The Bad Bank is expected by the government to adequately address the non-performing assets (NPA) crisis of the public sector lenders.

Apart from the PSU banks which are rallying on the back of surge in SBI stock price surge, private banking names have also advanced. The top gainers included IndusInd Bank, Kotak Mahindra Bank, RBL Bank, Axis Bank and HDFC Bank.

Source : https://www.moneycontrol.com/news/business/stocks/bank-nifty-hits-new-record-high-surges-over-17-since-feb-1-sbi-hdfc-bank-icici-bank-hit-52-week-high-6453371.html/amp