IDFC first, Axis, ICICI, HDFC other bank and financial services stocks rise on RBI liquidity Boost

Stock Market today- IDFC first Bank , Axis Bank, ICICI Bank, other banks and financial services stocks gained in the morning trades on Tuesday. The RBI liquidity Boost measures lifted the market sentiments.

The Nifty Bank Index gained more than 1% led by AU Bank, IDFC First Bank, HDFC Bank, Axis Bank, ICICI Bank and others which saw their share prices rise up to 3%

HDFC Bank, Axis Bank, ICICI Bank share prices rising more than 2% led the rebound in the benchmark Nift50 Index which gained up to 0.6% in the morning trades. Bajaj Finance and Bajaj Finserv with gains of more than 1% were also among drivers of the index

The Nifty financial Services index also gained more than 1.4% in the morning trades.

The gains were led by Cholamandalam Investment and Finance Company Ltd that saw its share price rise more than 3%. LIC Housing Finance Ltd was also among prominent gainers following Bajaj Finance and Bajaj Finserv.

RBI Liquidity measures

The Reserve Bank of India has chosen to carry out the multiple actions to add liquidity to the banking sector after reviewing the present financial and liquidity situation

These include OMO purchase auctions of Government of India securities for an aggregate amount of ₹60,000 crore by the Reserve Bank to be held in three tranches.

Also a Variable Rate Repo (VRR) auction will be held next month. A 56 day VRR auction of notified amount of ₹50000 crore is to be held next month.

Further a 6 month Dollar to Rupee Buy-Sell swap of $ 5 billion is also to be held on 31 January

Nifty Bank technical outlook

The Bank Nifty has rebounded well on Tuesday. However experts as Shrikant Chouhan, Head Equity Research, Kotak Securities are of the view that as long as Bank Nifty remains below 49000, weak sentiment will likely persist. On the downside, it could decline to the 47,500-47,200 range. However, if it rises above 49,000, there could be a rebound to the 20-day Simple Moving Average (SMA) or up to 49,500.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.