Banking stocks surged on Friday after the US Fed on Thursday decided to keep the interest rates unchanged. (Express Photo)
Banking stocks surged on Friday after the US Fed on Thursday decided to keep the interest rates unchanged. The BSE Bankex index jumped over 3 per cent in the morning trade.
Shares of public sector banks, Bank of Baroda, Punjab National Bank and State Bank of India were trading 3.83 per cent, 3.63 per cent and 3.13 per cent up at Rs 189.60, 141.30 and Rs 244.05, repectively.
Similary, private sector banks such as Axis Bank, ICICI Bank, HDFC Bank, Federal Bank and YES Bank were trading 4.53 per cent, 3.70 per cent, 3.24 per cent, 3.39 per cent and 1.48 per cent higher at Rs 516.50, Rs 283.25, Rs 1057.30, Rs 62.55 and Rs 1.48 per cent.
The BSE Bankex was up 3.19 per cent at 20,056 in the morning trade. Sensex was up 1.69 per cent at 26,404.
G Chokkalingam, founder and managing director, Equinomics Research said, “Banking stocks are trading higher in the morning trade as status quo by US Fed on interest rates strengthen the changes of rate cut in the upcoming RBI monetary policy on September 29. ”
Vaibhav Agrawal, VP and head of research, Angel Broking said, “We expect the Fed to continue to maintain an accommodative stance and raise rates in a very orderly fashion. We continue to remain positive on select banking stocks.”
According to reports the government is also considering increasing the foreign direct investment (FDI) limit in private banks to 100 per cent, from the existing 74 per cent.
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