It is the day of major gains at Dalal Street, as the company markets soared to roar with colossal gains. While the benchmark indices, the BSE Sensex and the NSE Nifty showcased the opulence of green, the major force behind the rise in the intraday trade lay in the surge of two sectoral indices, namely the Nifty Realty, and Nifty Bank.
In this, the banking index surged by a mammoth 1.98 per cent or 1,001.55 points.
This surge took the overall value of the Nifty Bank index to 51,595.10 points.
This surge of bank Nifty was in turn powered by its constituent banking shares.
Kotak Mahindra Bank Ltd Fully Paid Ord. Shrs
Kotak Mahindra Bank was one of the biggest gainers of the day. The Mumbai-based bank saw its shares soar by 4.33 per cent or Rs 90.05.
This took the overall value of the index to Rs 2,169.05 per share.
Axis Bank Ltd
Another private lender, Axis was also a chart-topper today. The stock price of Axis Bank also surged in the green.
Axis Bank shares zoomed 2.62 per cent or Rs 28.00. This took the overall value of the bank's stock price to Rs 1,098.15.
Canara Bank Ltd
Public sector banks were not behind in the merry-making surge, as the Bengaluru-based Canara Bank jumped in value on Monday.
The Canara bank shares rose to Rs 90.35 per share. This was a result of a spike of 3.21 per cent or Rs 2.81 per share.
Why Are Banking Shares Surging?
Another major bank, the Kerala-based Federal bank also saw its shares jump in value. The bank rose by a major 3.57 per cent or Rs 6.69, taking the overall of the bank's shares to Rs 193.99 per share.
This surge in banking shares is being attributed to the measures taken by the Reserve Bank of India (RBI).
Apart from cutting interest rates in February 2025, and reducing CRR in 2024, the central bank also reduced 'Risk Weight' on NBFC lending, thereby making it easier and less riskier for banks to lend to NBFCs.
This has percolated into the system, possibly infusing confidence in banking shares. In addition, markets are also anticipating a rate cut in the upcoming MPC meeting in April 2025, potentially furthering liquidity in the system.
