Nifty Bank rallies nearly 3% in a week; might hit fresh all-time high next week
Nifty Bank closed in the green for the third day in a row on Friday, which propelled the index above the 48,500 level in intraday trade.
The index pared some gains but outperformed Nifty 50. The Nifty bank rose 430 points to close at 48,493, while Nifty 50 ended flat with a negative bias.
The bank index rose from 47,124 recorded on March 27 to 48,493 as of April 5, which translates into an upside of 2.9% in a week. It registered the biggest single weekly gain in 9 weeks.
Banking stocks witnessed a steady rise on Friday even though the Reserve Bank of India (RBI) kept report rates unchanged and raised concerns over the possible rise in inflation.
«Although the RBI policy meeting unfolded as anticipated, concerns over food inflation and warnings of a heat wave tampered sentiment,” said Vinod Nair, head of research at Geojit Financial Services.
“While the main domestic indices concluded with marginal movement, the Bank Nifty edged higher, propelled by robust credit growth in Q4FY24. The global sentiment was dampened by the rise in oil prices and tensions in the Middle East,” he said.
PNB, Federal Bank, HDFC Bank, IDFC First Bank and Kotak Bank, AU Small Finance Bank closed with gains of 1-2% each while some selling was seen in Axis Bank, Bandhan Bank, and Bank of Baroda.
The Nifty Bank witnessed a steady rise post the outcome of the MPC meeting, which took it above its crucial resistance of 48,500 level and if the momentum sustains a fresh high could be on the cards.
The index hit a record high of 48,636 on
