Nifty Bank gains 3% post RBI's 50 bps hike; analysts see more headroom

The Reserve Bank of India's (RBI's) 50-bps repo rate hike triggered a sharp pullback rally in banking stocks on Friday. The Nifty PSU Bank index did even better with a rise of 3.01 per cent

The Reserve Bank of India's (RBI's) 50-basis point (bps) repo rate hike triggered a sharp pullback rally in banking stocks on Friday. Relative to the Nifty50's 1.64 per cent gain, the Nifty Bank index surged 984 points, or 2.6 per cent, on the National Stock Exchange (NSE). It had rallied 3 per cent intra-day.

The Nifty PSU Bank index did even better with an intraday rise of 3 per cent, compared with the Nifty Private Bank index's 2.8-per cent up move. Individually, Federal Bank, Punjab National Bank (PNB), IDFC First Bank, Bank of Baroda, IndusInd Bank, Kotak Bank, HDFC Bank,