Banking and Financial Stocks Soar as RBI Keeps Rates Unchanged; ICICI Bank, Bajaj Finance among the best winners

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Banking and financial stocks were in action as the Reserve Bank of India (RBI) decided to keep key rates unchanged. Nifty Bank and Nifty Financial Services gained 1.31% and 1.39% respectively. Likewise, the Sensex S&P BSE index of private banks rose 1.35% or 188 points around the same time. The Nifty real estate index also jumped 1.35% following the RBI’s announcement.

The main winners were ICICI Bank, Bajaj Finance, Bajaj Finserv, RBL Bank, State Bank of India, with stocks appreciating up to 3% after the announcement of RBI Governor Shaktikanta Das. ICICI Bank, SBI, RBL Bank were the main winners of the Nifty Bank and S&P BSE Private Banks indices.

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“The announcements were in line with expectations with inflation aligned with target. We expect some recovery in the broader markets. We believe Bank Nifty has also gained ground over the past two years by holding back supporting its long-term 200-day average at 35,700 levels, and there could be more benefits as the RBI policy event is favorable, ”said Vikas Jain, senior research analyst at Reliance Securities .

After the announcement, Yash Gupta, equity research analyst, Angel One Ltd, was also bullish on real estate stocks and believed the RBI’s move would continue to help the real estate industry. “Reserve Bank of India keeping rates unchanged in an accommodative position is good news for real estate companies as there will be no hike in mortgage rates, currently mortgage rates are between 6.5% and 8%, one of the lowest mortgage rates in history. We are continuing our purchase from Sobha Limited with a target price of 960, ”said Yash Gupta.

Earlier, the RBI kept the benchmark interest rate unchanged at 4% on Wednesday and decided to maintain its dovish stance amid concerns over the emergence of the new variant of the Omicron coronavirus.

In response to the announcement, even the national stock benchmarks Nifty50 and Sensex hit their daily highs after the RBI decided to keep rates unchanged and keep inflation at 5.3% for the year. ‘fiscal year 2022.

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