ICICI Bank, HDFC, SBI surges before RBI policy review
DATE: 17/09/2012
NEW DELHI: The BSE Banking Index surged nearly 2 per cent in trade on Monday, led by gains in ICICI Bank, State Bank of India, Yes Bank and Axis Bank ahead of the Reserve Bank of India (RBI) policy meet later today.
Most analysts expect the RBI to keep rates steady in its policy meet later today as even though the UPA government has released a flurry of reforms to lift investor sentiment and revive economic growth, however, inflation still remains above the RBI's desired levels.
In a Reuters snap poll of 18 economists on Friday, all but two expected the RBI to leave its policy repo rate unchanged at 8 percent, in line with a poll conducted earlier this month.
Goldman Sach also expects no rate action by the RBI on September 17 as August WPI inflation came in above market expectations and the near-term pressures on inflation are likely to persist due to a greater-than-expected diesel price hike and rising international commodity prices.
"We expect the RBI to issue a hawkish statement, highlighting the risks to inflation and elevated inflation expectations," Goldman Sach said in a report on Monday.
Citi is of the view that the RBI should cut 50 bps in 2HFY13 due to GDP slowdown and high inflation.
At 10:10 am, ICICI Bank was trading 3.9 per cent higher at Rs 1045.55. The stock surged over 4 per cent to hit its 52-week high of Rs 1051.15 in trade today.
State Bank of India was trading 3.3 per cent higher at Rs 2037. It has hit a low of Rs 2005 and a high of Rs 2065.80 today.
Axis Bank was trading 3.9 per cent higher at Rs 1049.75. It has hit a low of Rs 1030 and a high of Rs 1061 today.
Yes Bank was trading 4.4 per cent higher at Rs 371.85. It has hit a low of Rs 358.60 and a high of Rs 374.95 today.
Most analysts expect the RBI to keep rates steady in its policy meet later today as even though the UPA government has released a flurry of reforms to lift investor sentiment and revive economic growth, however, inflation still remains above the RBI's desired levels.
In a Reuters snap poll of 18 economists on Friday, all but two expected the RBI to leave its policy repo rate unchanged at 8 percent, in line with a poll conducted earlier this month.
Goldman Sach also expects no rate action by the RBI on September 17 as August WPI inflation came in above market expectations and the near-term pressures on inflation are likely to persist due to a greater-than-expected diesel price hike and rising international commodity prices.
"We expect the RBI to issue a hawkish statement, highlighting the risks to inflation and elevated inflation expectations," Goldman Sach said in a report on Monday.
Citi is of the view that the RBI should cut 50 bps in 2HFY13 due to GDP slowdown and high inflation.
At 10:10 am, ICICI Bank was trading 3.9 per cent higher at Rs 1045.55. The stock surged over 4 per cent to hit its 52-week high of Rs 1051.15 in trade today.
State Bank of India was trading 3.3 per cent higher at Rs 2037. It has hit a low of Rs 2005 and a high of Rs 2065.80 today.
Axis Bank was trading 3.9 per cent higher at Rs 1049.75. It has hit a low of Rs 1030 and a high of Rs 1061 today.
Yes Bank was trading 4.4 per cent higher at Rs 371.85. It has hit a low of Rs 358.60 and a high of Rs 374.95 today.
+POWERED BY: MONEY CONTROL NEWS
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