Nifty Bank Drops 1% to 57,651 Ahead of RBI Decision as 4.38% Inflation Fuels Hawkish Fears
Updated
Updated · Mint · Aug 4
Nifty Bank Drops 1% to 57,651 Ahead of RBI Decision as 4.38% Inflation Fuels Hawkish Fears
3 articles · Updated · Mint · Aug 4
Summary
Nifty Bank fell 1% to an intraday low of 57,651.15 on Tuesday as investors cut exposure before the RBI's Aug. 5 policy decision and Governor Sanjay Malhotra's briefing.
June retail inflation accelerated to 4.38%, above the RBI's 4% target, while West Asia tensions added to uncertainty over whether the central bank keeps rates at 5.25% but adopts a tougher tone.
Federal Bank led the declines with a drop of more than 3%, while Axis Bank lost over 1.5% and HDFC Bank, SBI, ICICI Bank and IndusInd Bank fell 0.5% to 1%; Canara Bank, Bank of Baroda and PNB bucked the trend.
Reuters polling shows 68 of 72 economists expect no rate change this week, but markets are focused on guidance because elevated inflation could make future easing harder even if the RBI stays on hold.