Stock market today: Why Bank stocks are rising ahead of US CPI data release — explained with two reasons

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Stock market today: After a heavy sell-off on Monday, banking stocks listed on Dalal Street attracted good buying interest during morning deals on Tuesday. The bank Nifty index today opened upside at 45,056 level and went on to touch an intraday high of 45,183 mark, logging an intraday rise of around 300 points within an hour of the opening bell.

According to stock market experts, banking stocks are rising due to oversold conditions and soft US CPI data buzz. They said that banking stocks have received a heavy beating in the recent few sessions, but after the soft Indian inflation data for January 2024, the market is expecting soft US CPI data as well.

Hence, in the wake of soft US inflation, the market believes that the US Fed would be under pressure to go for the interest rate cut. Also Read: Paytm stock sheds another 8.5% after Macquarie cuts target price to ₹275 On reasons that are fueling banking shares of the Indian stock market, Saurabh Jain, Vice President — Research at SMC Global Securities said, "This rise in the banking stocks today can be attributed to two major reasons — soft Indian inflation data for January 2024 and soft US CPI data that is expected today.

This buzz has fueled speculations about the US Fed rate cut in the near term. Hence, bulls are putting weight behind the banking stocks during Tuesday deals." Connecting the soft US CPI data with the Indian stock market, Sandeep Pandey, Founder of Basav Capital said, "In the recently held RBI MPC meeting, one member had voted in favor of interest rate cut but rest members voted in favor of steady repo rate.