Banking shares are trading higher by up to 5% in early morning deals after the Reserve Bank of India (RBI) Governor Raghuram Rajan, on Wednesday, said that the current account deficit (CAD) for this year would be about $56 billion, less than 3% of gross domestic product (GDP) and $32 billion less than last year. He felt that there was no fundamental reason for rupee volatility.
YES Bank, IndusInd Bank, Axis Bank, Union Bank of India, Bank of India, ICICI Bank, Canara Bank and Punjab National Bank are up more than 3% each on the National Stock Exchange (NSE).
The NSE banking share index Bank Nifty was up 2.8% compared to 1.45% rise in benchmark CNX Nifty at 0930 hours.
Meanwhile, the RBI said it will sell bonds worth Rs 8,000 crore next week under the open market operations (OMO) to inject liquidity in the system.
YES Bank, IndusInd Bank, Axis Bank, Union Bank of India, Bank of India, ICICI Bank, Canara Bank and Punjab National Bank are up more than 3% each on the National Stock Exchange (NSE).
The NSE banking share index Bank Nifty was up 2.8% compared to 1.45% rise in benchmark CNX Nifty at 0930 hours.
Meanwhile, the RBI said it will sell bonds worth Rs 8,000 crore next week under the open market operations (OMO) to inject liquidity in the system.
