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Banking stocks shine ahead of Credit Policy(The Hindu Businessline 29th Jan 2008)Banking sector stocks were flying high on the hope of a cut in credit rates in tomorrow’s credit policy review. The buzz in the market is that the central bank might cut a key interest rate by 25-50 bps. On the BSE, only the auto and bankex sector ended the day in the green.
The BSE-Bankex outperformed the Benchmark index to end the day up 1.24 per cent more than its previous day’s close. Only four stocks declined in the sector and 14 stocks advanced. The country’s largest private sector bank, ICICI Bank, was among the top gainers of the day on the BSE today. It was up 1.15 per cent to close the day at Rs 1273.70.
Other stocks that performed well today in the banking sector include Axis Bank, which surged ahead 3.66 per cent, Bank of India, which raced ahead 3.78 per cent, Canara Bank, which saw an increase in its prices by 5.11 per cent, and Yes Bank, which went up a whopping 5.05 per cent.
“If the RBI cuts the rates then it is positive for the banks as their cost of borrowing will come down. Not just that but also it will improve their bond portfolio,” said Mr Devendra Nevgi, CEO & CIO, Quantum Asset Management Company Private Ltd More
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