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Bank stocks got a thumbs-up from investors with the RBI Governor soothing investors’ nerves over rupee depreciation and pegging the Current Account Deficit (CAD) at around $56 billion that was a third less than last year.
However, with the elevated Wholesale Price Index (WPI) at 7 per cent in October compared to 6.46 per cent in September this year, expectations that interest rates might ease may have to be tempered.
While all the 12 stocks constituting the CNX Bank Nifty were in the green. Axis Bank was the biggest gainer in terms of value and percentage as the stock vaulted by Rs 57.65 or 5.59 per cent to Rs 1,088.25. YES Bank gained Rs 15.80 or 4.76 per cent to trade at Rs 347.40.
The good Q2 numbers enabled Bank of India to post a 4.57 per cent (Rs 9.70) gain and the stock moved up to Rs 221.75. ICICI Bank jumped by Rs 43.50 to trade at Rs 1,058.40 followed by Union Bank of India which was trading at Rs 122.50, a gain of Rs 4 or 3.38 per cent.
SBI was up by Rs 27.70 or 1.63 per cent to trade at Rs 1,724.75. Probably the higher provisioning that the bank made in the second quarter that lowered its net profit by 35 per cent may have weighed in with the investors.
The Bank Nifty had gained 317.15 points.
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