Financials in focus post RBI meet; Axis Bank, RBL Bank, Bajaj Finserv rally

Shares of financials, including banks, non-banking finance companies (NBFCs), housing loans companies and microfinance institutions, were in focus on Friday after the Reserve Bank of India Governor Shaktikanta Das announced various measures, including a reduction in reverse repo rate.

The apex bank also announced special refinance package for National Bank for Agriculture and Rural Development (Nabard), Small industrial Development Bank of India (Sidbi) and National Housing Bank (NHB). Reverse repo rate was also cut by 25 basis points (bps) to 3.75 per cent in order to tackle the coronavirus pandemic.

Addressing the media for the second time since the Narendra Modi government imposed a national lockdown on March 25; RBI Governor Shaktikanta Das also announced an Rs 50,000-crore special refinance package for Nabard, Sidbi and NHB. RBI told banks not to make any dividend payouts until further notice.  CLICK HERE FOR FULL DETAILS

At 10:45 am, Nifty Bank, Nifty Private Bank and Nifty Financial Services index were up 3 per cent, as compared to 2 per cent rise in the benchmark Nifty 50 index. Theses indices had rallied up to 5 per cent in early morning deals before the Governor's address to media.

Among individual stocks, Shriram Transport Finance, Indiabulls Housing Finance, Cholamandalam Investment and Finance Company and Bajaj Finserv were up more than 5 per cent on the National Stock Exchange (NSE).

Mahindra & Mahindra (M&M) Financial Services, HDFC Life Insurance Company, Bajaj Finance, Development Finance Corporation (HDFC), REC, Axis Bank, RBL Bank, IndusInd Bank and ICICI Bank were up in the range of 3 per cent to 5 per cent. These stocks have surged by up to 15 per cent in intra-day trade.

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