Banking stocks trade mixed ahead of RBI policy

Among individual stocks, Kotak Mahindra Bank, HDFC Bank, Axis Bank, PNB and Canara Bank have slipped 0.4% to 1.1%

Banking stocks are trading mixed ahead of Reserve Bank of India’s (RBI’s) sixth bi-monthly Monetary Policy review later in the day today. The S&P BSE Bankex is trading 0.3% down as compared to the benckmark index, the S&P BSE Sensex that is trading nearly flat at 29,136 levels.

Having cut its policy interest rate just three weeks ago, the Reserve Bank of India (RBI) is expected to hold rates steady at a policy review on Tuesday, leaving its next move until after the government presents its annual budget at the end of this month, suggested a Reuters report.

The timing of the 0.25 percentage point cut in the repo rate on Jan 15 caught markets off-guard, even though investors were expecting the RBI to embark on a easing cycle at some point during the early months of the year, it added.

Among individual stocks, Kotak Mahindra Bank, HDFC Bank, Axis Bank, Punjab National Bank (PNB) and Canara Bank have slipped 0.4% to 1.1%. On the other hand, IndusInd Bank, Bank of Baroda, ICICI Bank and YES Bank have surged 0.4% to 1%.

Other rate sensitive stocks such as autos and real estate are also trading mixed in morning deals, ahead of the policy statement.