Banking shares are in limelight in morning trades with most of the frontline stocks rallied up to 10% on hopes of interest rates cut.
The government's move to raise diesel prices provides room for Reserve Bank of India (RBI) to ease monetary policy to give thrust on growth. The RBI scheduled to meet on Monday to review the monetary policy.
“The hike in diesel price will bring down burden on fiscal deficit even as it will put pressure on inflation. Inflation is expected to go up at least 0.4% as diesel price hike will have cascading effect,” the PTI report suggests quoting C Rangarajan, Prime Minister's Economic Advisory Council Chairman (PMEAC).
The National Stock Exchange (NSE), Bank Nifty, the largest gainer among the sectoral indices has surged 2.7% as compared to 1.8% rise in benchmark Nifty at 0932 hours.
Among the individual stocks, ICICI Bank has hit 52-week high and rallied up to 10% at Rs 1,055 on the NSE. State Bank of India (SBI) has surged 5% to Rs 1,959, followed by Yes Bank and Union Bank of India are up 4% each at Rs 355 and Rs 166 respectively.