Banking shares have continue at their upward march for fourth straight trading day in a row after the Reserve Bank of India (RBI) last week announced a slew of measures to benefit retail investors and revive the Indian economy.
Axis Bank, YES Bank, Punjab National Bank, Kotak Mahindra Bank, State Bank of India, ICICI Bank and HDFC Bank are trading higher by 2-7% on the National Stock Exchange (NSE).
The NSE banking share index Bank Nifty was up 2.4% at 10,195, rallied nearly 18% from 8,664 touched on last Tuesday as compared to 9% rise in benchmark CNX Nifty during the same period.
The new RBI governor last week announced measures such as liberalisation of the financial market by enhancing the limits for exporters to re-book cancelled forward exchange contracts and opening a special concessional window for swapping foreign currency non-resident (FCNR) deposits and dollar funds to support the rupee.
The rupee was trading at 64.25 in early trade against the dollar at the Interbank Foreign Exchange, has appreciated over 5% in past four trading sessions.
A revival in exports accompanied by a compression in imports (especially in gold) could help the trade deficit reduce to the $10-12 billion per month level over the next few months. This is essential for the stabilization of the rupee, since the capital flow environment will get tougher as US interest rates rise and the Fed tapering reduces risk appetite, according to analyst at Bank of America Merrill Lynch.
Axis Bank, YES Bank, Punjab National Bank, Kotak Mahindra Bank, State Bank of India, ICICI Bank and HDFC Bank are trading higher by 2-7% on the National Stock Exchange (NSE).
The NSE banking share index Bank Nifty was up 2.4% at 10,195, rallied nearly 18% from 8,664 touched on last Tuesday as compared to 9% rise in benchmark CNX Nifty during the same period.
The new RBI governor last week announced measures such as liberalisation of the financial market by enhancing the limits for exporters to re-book cancelled forward exchange contracts and opening a special concessional window for swapping foreign currency non-resident (FCNR) deposits and dollar funds to support the rupee.
The rupee was trading at 64.25 in early trade against the dollar at the Interbank Foreign Exchange, has appreciated over 5% in past four trading sessions.
A revival in exports accompanied by a compression in imports (especially in gold) could help the trade deficit reduce to the $10-12 billion per month level over the next few months. This is essential for the stabilization of the rupee, since the capital flow environment will get tougher as US interest rates rise and the Fed tapering reduces risk appetite, according to analyst at Bank of America Merrill Lynch.