Nifty Bank Rises After RBI's Maintains Repo Rate

Shares of Nifty Bank erased loss to trade 0.17% higher after the Reserve Bank of India maintained the repo rate at 6.5% for the ninth straight time.

HDFC Bank Ltd., State Bank of India and Federal Bank Ltd. were among top contributors to the gain, while ICICI Bank Ltd., Axis Bank Ltd. and Kotak Mahindra Bank Ltd. weighed the index.

As of 12:07, Nifty Bank was trading 0.17% higher at 50,203.55 apiece. The NSE Nifty 50 was trading 100.64 points, or 0.41% lower at 24,196.85, and the BSE Sensex was down 315.35 points, or 0.40% at 79,152.66.

During his Monetary Policy speech on Thursday, Das highlighted that home equity loans or top-up loans provided by banks and non-banking financial companies are growing at a quick pace. Lenders are also providing these loans on other collateralised assets, such as gold loans.

Nifty PSU Bank also erased loss to trade 0.18% higher at 6,928.45 as of 12:11 p.m.

Bank of India, Union Bank of India and State Bank of India were top contributors, while Bank of Baroda, Punjab National Bank and Canara Bank negatively contributed to changes in the index.