Banking Surge as RBI Injects Liquidity

Banking stocks, including Axis Bank and HDFC Bank, rose by 3% following the Reserve Bank of India's decision to inject Rs 1.5 lakh crore into the banking system. This move, aimed at easing liquidity, raises the possibility of an interest rate cut in the upcoming RBI policy meeting.

The Reserve Bank of India's liquidity measures triggered a significant surge in banking stocks on Tuesday. Major players like Axis Bank and HDFC Bank witnessed a 3% rise following the central bank's announcement to inject Rs 1.5 lakh crore into the banking system.

Market experts believe the RBI's decision could alleviate liquidity issues, potentially leading to an interest rate cut in the February policy meeting. This development brings much-needed relief to the banking sector, which had been grappling with high liquidity deficits.

The stock market reflected this positive outlook, with Axis Bank shares climbing 3.20% to Rs 978.20 and HDFC Bank advancing 3.09% to Rs 1,680 on the BSE. The BSE bankex index also surged, adding 905.14 points to reach 55,608.43.

(With inputs from agencies.)