Banking shares rebound post RBI policy

At 1121 hours, the NSE banking share index, Bank Nifty was up 68 points at 18,594,,bouncing back 293 points from intra-day low of 18,301.

Banking shares have bounced back from their intra-day lows, after the Reserve Bank of India (RBI) Governor Raghuram Rajan said that a rate cut was likely early next year if the inflation momentum -- currently on a downward path -- continues and if fiscal developments are encouraging.

The RBI has kept key rates unchanged for the fifth time in a row in its bi-monthly policy review today.

At 1121 hours, the National Stock Exchange (NSE) Bank Nifty, banking share index, was up 0.37% or 68 points at 18,594, at day’s high level. The index bounced back 293 points from its intra-day low of 18,301. The benchmark CNX Nifty was down 0.15% at 8,543.

State Bank of India (SBI), ICICI Bank, Kotak Mahindra Bank, Punjab National Bank, Bank of India and Bank of Baroda are trading in green by up to 2% on NSE. Most of these stocks have bounced back from their intra-day lows.