Bank, NBFC stocks gain after RBI policy announcement

New Delhi, Apr 5 (PTI) Interest-rate sensitive bank and NBFC stocks gained on Friday after the Reserve Bank kept the benchmark interest rates unchanged at 6.5 per cent for the seventh time in a row.

Among the banking counters, Kotak Mahindra Bank jumped 2.09 per cent to end at Rs 1,785.25 and HDFC Bank went 1.41 per cent higher to finish at Rs 1,549.40 apiece on the BSE. Also, State Bank of India grew 0.67 per cent to end at Rs 764.35 each, IndusInd Bank climbed 0.66 per cent to settle at Rs 1,554 and ICICI Bank rose 0.51 per cent to finish at Rs 1,082.35.

However, Bank of Baroda fell 0.24 per cent to close at Rs 268.70 per piece on the exchange. The BSE Bankex increased 451.11 points or 0.83 per cent to close at 54,590.61. Among the NBFC stocks, SBI Cards and Payment Services jumped 5.24 per cent to close at Rs 730.45, Jio Financial Services climbed 3.24 per cent to settle at Rs 373.05 and Bajaj Finserv gained 1.56 per cent to end at Rs 1,681 apiece on the exchange.

Also, shares of LIC Housing Finance rose 0.14 per cent to settle at Rs 645 apiece on the BSE. On the other hand, shares of Bajaj Finance declined 1.48 per cent to close at Rs 7,175.65. The BSE Financial Services jumped 97.52 points or 0.92 per cent to end at 10,679.39. The Nifty Bank climbed 432.25 points or 0.90 per cent to settle at 48,493.05. Bouncing back from the early fall, the 30-share BSE Sensex climbed 20.59 points or 0.03 per cent to settle at 74,248.22 points. The broader Nifty ended with a marginal loss of 0.95 points at 22,513.70.

On Friday, the Reserve Bank of India said it has kept the benchmark interest rates unchanged at 6.5 per cent for the seventh time in a row, citing concerns over food inflation in view of IMD’s prediction of above normal maximum temperatures during April to June. As RBI has held key policy rates steady, the EMIs on home and auto loans are likely to remain stable for some more time. The central bank has kept interest rates unchanged since February 2023.

While unveiling the first bi-monthly monetary policy for the current financial year, RBI has retained its growth and inflation forecast for the current fiscal at 7 per cent and 4.5 per cent, respectively.

“After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, it (MPC) decided by a 5 to 1 majority to keep the policy repo rate unchanged at 6.50 per cent,” RBI Governor Shaktikanta Das said.

He further said that the six-member MPC would remain focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth.