Coimbatore, Jan 28 With the RBI Governor Raghuram Rajan hiking repo rate by 25 basis points to 8 per cent and leaving the Cash Reserve Ratio (CRR) unchanged, bank stocks took a pounding immediately after the RBI decision was made today.
But within about 15 minutes, the Bank Nifty recovered by about 100 points from its lows with four of the 12 bank stocks trading in the green by 11.25 a.m., though the Bank Nifty was still in the red.
The Bank Nifty plunged by about 150 points after the RBI Governor made his announcement with ICICI Bank, Axis Bank, PNB and IndusInd Bank emerging as major losers.
But after about 15 minutes, once the full import of the RBI announcement was understood by the market, the Bank Nifty was able to recover much of its losses with the index down by about 55 points, a recovery of nearly 100 points from its lows.
Bank of Baroda was trading at Rs 575, a gain of Rs 6.35, Union Bank gained 45 paise to trade at Rs 111.05, SBI edged up by Rs 6.45 to trade at Rs 1,600.95 and Yes Bank was up by 35 paise to Rs 322.
Among the notable losers were PNB, ICICI Bank, HDFC Bank and IndusInd Bank but their losses were all in single digits.