Money on the markets

A maturing market amid the mayhem

Good day for banking stocks

June 3, 2010

The BSE Banking index closed 2 percent higher on Thursday while the broader market ended 1.6 pct marginally over the 17,000 mark.

HDFC Bank ended 2.7 pct higher, Axis Bank gained 3.4 pct while SBI shares rose 1.2 pct up.

The Reserve Bank of India (RBI) may still raise interest rates before a scheduled policy review in July, HSBC had said, after data showed on Monday the economy grew an expected 8.6 percent in the final quarter of fiscal 2009/10.

Do you think the expected tightening in monetary policy may weigh on banking shares?

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