Banking shares rally on rate cut hopes; ICICI, HDFC Bank hit 52-week high
DATE: 14/09/2012
NEW DELHI: The BSE Banking index surged over 3 per cent on Friday, led by gains in ICICI Bank, State Bank of India and Punjab National Bank, on the hopes that the Reserve Bank of India may ease its monetary policy stance in the coming policy review meet on Monday.
Among the individual stocks, ICICI BankBSE 5.48 % surged over 10 per cent to hit its 52-week high of Rs 1050.75. HDFC advanced over 2 per cent to hit its 52-week high of Rs 767.75 and HDFC Bank moved over 2 per cent to touch its 52-week high of Rs 609.95 in trade today.
JPMorgan is of the view that with the Reserve Bank of India clearly indicating that any further monetary easing would be contingent on credible fiscal consolidation, today's move can be interpreted as laying the groundwork for the central bank to perhaps ease at some point in the future.
A Reuters report quoting G. Chokkalingam, chief investment officer at Centrum Wealth Management, said that the market would be enthused by the government's move on diesel prices. It is a major positive for the markets.
"There would be more confidence now on other reform measures too and stage is set for the central bank to cut rates by 50 bps on Monday," added Chokkalingam.
Analysts are of the view that the diesel price hike ahead of RBI policy clearly shows that the government wants the central bank to ease on its policy stance and take steps to revive growth in the economy.
At 11:40 am, ICICI Bank was trading 4.8 per cent higher at Rs 1005.40. It has hit a low of Rs 985.10 and a high of Rs 1055.40 today.
HDFC Ltd was trading 1.8 per cent higher at Rs 765. It has hit a low of Rs 759.10 and a high of Rs 767.75 today.
HDFC Bank LtdBSE 1.25 % was trading 1.5 per cent higher at Rs 607. It has hit a low of Rs 601.05 and a high of Rs 609.95 today.
State Bank rose 4.3 per cent higher to Rs 1949.05, Punjab National BankBSE 3.51 % advanced 3.8 per cent to Rs 708.80, Yes Bank was up 6 per cent to Rs 359.25 and Axis BankBSE 4.39 % was trading 4.1 per cent higher at Rs 989
Among the individual stocks, ICICI BankBSE 5.48 % surged over 10 per cent to hit its 52-week high of Rs 1050.75. HDFC advanced over 2 per cent to hit its 52-week high of Rs 767.75 and HDFC Bank moved over 2 per cent to touch its 52-week high of Rs 609.95 in trade today.
JPMorgan is of the view that with the Reserve Bank of India clearly indicating that any further monetary easing would be contingent on credible fiscal consolidation, today's move can be interpreted as laying the groundwork for the central bank to perhaps ease at some point in the future.
A Reuters report quoting G. Chokkalingam, chief investment officer at Centrum Wealth Management, said that the market would be enthused by the government's move on diesel prices. It is a major positive for the markets.
"There would be more confidence now on other reform measures too and stage is set for the central bank to cut rates by 50 bps on Monday," added Chokkalingam.
Analysts are of the view that the diesel price hike ahead of RBI policy clearly shows that the government wants the central bank to ease on its policy stance and take steps to revive growth in the economy.
At 11:40 am, ICICI Bank was trading 4.8 per cent higher at Rs 1005.40. It has hit a low of Rs 985.10 and a high of Rs 1055.40 today.
HDFC Ltd was trading 1.8 per cent higher at Rs 765. It has hit a low of Rs 759.10 and a high of Rs 767.75 today.
HDFC Bank LtdBSE 1.25 % was trading 1.5 per cent higher at Rs 607. It has hit a low of Rs 601.05 and a high of Rs 609.95 today.
State Bank rose 4.3 per cent higher to Rs 1949.05, Punjab National BankBSE 3.51 % advanced 3.8 per cent to Rs 708.80, Yes Bank was up 6 per cent to Rs 359.25 and Axis BankBSE 4.39 % was trading 4.1 per cent higher at Rs 989
+POWERED BY: CAPITAL MARKET NEWS
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