Rate sensitive shares bounce back after RBI hikes rate; Nifty Bank gains 1%

Kotak Mahindra Bank, HDFC Bank, Axis Bank, State Bank of India, HDFC, ICICI Bank, SBI Life Insurance and SBI Cards from the Nifty Financial index gained up to 2 per cent each.

Shares of rate sensitive sectors traded mostly higher on the bourses after the Reserve Bak of India (RBI) raised the policy repo rate by 50 basis points (bsp) to 5.9 per cent in its monetary policy review on Friday. This is the fourth hike in repo rate in the current financial year. In its Monetary Policy Committee meeting (MPC), the RBI decided to withdraw accodative stance while supporting growth.

Financial indices includes Nifty Bank, Nifty Financial Services, Nifty PSU Bank and Nifty Private Bank index rallied nearly 1 per cent each, as compared to 0.46 per cent rise in