Mumbai, June 3 (IANS). Before the RBI MPC meeting, the Nifty Bank on Tuesday created a new all-time high 56,161.40.
This bounce came due to strong purchases in select banks. The reason for this is that investors are showing an optimistic stance before the Reserve Bank of India (RBI) cut a possible interest rates at the end of this week.
However, the initial lead did not last long. The index declined after morning trading. In the afternoon trading, the Nifty Bank was down 0.43 percent to 55,662.
Major private banks like ICICI Bank, Axis Bank and Kotak Mahindra Bank worked to draw the index down. The shares of these banks saw a decline of up to one percent.
In contrast, shares of banks like AU Small Finance Bank, Federal Bank, Punjab National Bank, HDFC Bank and IndusInd Bank saw an increase between 0.4 percent and 1.2 percent.
Despite the decline, the Nifty Bank index is still one of the top performing index in 2025. Since the beginning of the year, it has seen a 10 percent increase and is 15 percent above its 52-week level. It has given a return of 9.7 percent in the last 12 months.
The RBI Monetary Policy Committee (MPC) meeting will begin on June 4 and on June 6, the Governor of the Central Bank will announce the decisions of the meeting.
Many analysts hope that the central bank will deduct 25 basis points in the major lending rate or repo rate.
Under the leadership of Governor Sanjay Malhotra, the central bank has already cut interest rates twice before this year, in which the repo rate has been reduced from 6.5 percent to 6 percent.
Experts believe that circumstances are correct to further relax to support development.
-IANS
ABS/
