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Bank Nifty Reclaims 55,000 Amid RBI Rate Decision Anticipation
M
Moneycontrol•06-10-2026, 14:44
Bank Nifty Reclaims 55,000 Amid RBI Rate Decision Anticipation
- •The Bank Nifty index rose for the second consecutive session on October 6, crossing the 55,000 mark driven by strong performances from Kotak Mahindra Bank and Axis Bank.
- •Analysts suggest maintaining a cautious stance and watching key support levels between 53,000 and 53,500 ahead of the upcoming Reserve Bank of India monetary policy announcement.
- •Experts anticipate a 25 basis points repo rate hike by the RBI, with market participants closely monitoring the central bank's policy stance and inflation estimates.
- •Kotak Mahindra Bank shares surged over 4 percent following strong quarterly business updates, prompting brokerages like Goldman Sachs and Citi to maintain their buy ratings and raise target prices.
Key Questions Answered
The Bank Nifty index rose for the second consecutive day and reclaimed the 55,000 level, driven by strong gains in major lenders like Kotak Mahindra Bank and Axis Bank, which climbed 4% and 2.3% respectively, alongside positive contributions from IndusInd Bank and HDFC Bank.
The Indian bond market is widely pricing in a repo rate hike of 25 basis points and a temporary Cash Reserve Ratio (CRR) hike of 50 basis points during the monetary policy announcement.
Kotak Mahindra Bank reported that its net advances grew nearly 25% year-on-year to Rs 5.77 lakh crore as of September 30, while total deposits increased 23% year-on-year to Rs 6.51 lakh crore.
