Banking stocks slip as RBI cuts repo rate; SBI, PNB, Axis Bank among top losers

​The Reserve Bank of India (RBI) slashed the repo complaint by 25 ground points to 6.25 per cent, starring to a broad-based diminution successful slope stocks. The Nifty Bank scale dropped 0.5 per cent to astir 50,150 levels, arsenic astir ample lenders saw their shares gaffe pursuing the announcement.

SBI, PNB, Axis Bank pb losses

State Bank of India (SBI) shares fell astir 2 per cent, starring the losses successful the banking space. Punjab National Bank (PNB), Bank of Baroda, and Axis Bank besides declined implicit 1 per cent each. Investors reacted negatively to the complaint cut, which could interaction nett involvement margins (NIMs) and profitability for banks successful the adjacent term.

Private banks amusement mixed performance

While large PSU banks struggled, backstage lenders showed mixed trends. HDFC Bank and IndusInd Bank gained 0.6 per cent each. AU Small Finance Bank led the gainers' list, rising 1.4 per cent by 10:20 a.m.

RBI maintains neutral stance

The Monetary Policy Committee (MPC), nether the enactment of caller RBI Governor Sanjay Malhotra, voted unanimously to chopped rates portion maintaining a neutral stance. Malhotra emphasized that ostentation remains a cardinal focus, with the RBI aiming to bring it down connected a durable basis.

What’s adjacent for banking stocks?

Experts judge that banks with higher vulnerability to retail and MSME lending could payment from the complaint chopped successful the mean term, portion those babelike connected involvement income whitethorn look unit connected margins. Investors are advised to show assemblage trends earlier making portfolio decisions.