Anticipating a pause, if not a reversal, in RBI’s action in hiking interest rates to deal with inflation, the Bank Nifty surged by about 128 points in the early minutes of trading today.
But this also puts the bank stocks at risk because if the RBI Governor's action does not meet the market's expectations, then the bank stocks may come under severe selling pressure.
SBI topped the gainers list among Bank Nifty stocks, up by Rs 33.20 at Rs 1,770. PNB, which gained Rs 13.45 to trade around Rs 882, Axis Bank, which moved up by Rs 12.70 to Rs 961.80, ICICI Bank that gained Rs 10.15 to Rs 708.75, BoB, which was up by Rs 7.50 at Rs 727, and HDFC Bank, which went up by Rs 8.45 to Rs 439.80, were among the major gainers. All the Bank Nifty stocks are in the green.
The overall market sentiment was positive in view of the developments in the US that was reflected in the Asian markets this morning.