The RBI issuing guidelines for starting payments and small banks and the decision of the OPEC not to cut output despite sliding oil prices sent the markets on a new high with the BSE Sensex and NSE Nifty reaching new peaks in the morning.
Though the RBI may not cut the interest rates immediately, with the expected fall in inflation paving the way for a favourable decision from the RBI early next year, the bank stocks were sizzling, with the CNX Bank Nifty zooming by over 560 points with eight of its twelve constituents touching new yearly highs.
An idea of market mood could be guessed from the fact that out of the top ten gainers among the Nifty stocks in terms of percentage, seven were bank stocks-Bank of Baroda, IndusInd Bank, Punjab National Bank, SBI, Axis Bank, Kotak Mahindra Bank and ICICI Bank. The other three were Asian Paints, BPCL and Tata Motors.
IndusInd reached a new high of ₹759.80 before edging down to ₹757.75, a gain of ₹37.15. SBI was another bank stock to touch a new high (post stock split) of ₹319.85 and was trading at ₹319.30, a gain of ₹13.45. Axis Bank shares jumped to a new high of ₹485.80 before coming down to ₹483.80. Kotak Bank and ICICI Bank completed the list of top ten gainers, though they did not touch new yearly high.
Asian Paints also touched a new 52-week high of ₹749.20 before easing to at ₹741.85, a gain of ₹36.15, BPCL jumped to a new 52 week high of ₹785 but could not hold on to the gains and slipped to ₹753.40, still up by ₹32.85 and Tata Motors was trading at ₹533.80, a gain of ₹13.85.
Bank Nifty was a major sectoral index gainer, up by about 568 points. Apart from the bank stocks mentioned above, the other constituents of Bank Nifty to reach new yearly highs were Yes Bank, Federal Bank and HDFC Bank . Yes Bank reached a new high of ₹719.35 before moving slightly down to ₹717.75, Federal bank jumped to a high of ₹151.70 before going down to ₹151.50 and HDFC Bank touched a high of ₹965.90 and is trading at ₹961.50, a gain of ₹13.35.