Money on the markets

A maturing market amid the mayhem

Banking index gains

July 29, 2010

The BSE Banking index rose nearly 1 percent on Thursday as banks shrugged off rising trend in rates and climbed on hopes robust economic growth will boost demand for loans.

Federal Bank shares gained 2.6 percent and ended as the top gainer in the index, followed by Bank of Baroda which gained 2.5 percent.

Shares in ICICI, India’s top private sector lender, ended nearly 2 percent higher.

A Reuters poll has shown that the RBI may hike interest rates again by September. Would you invest in banking counters at this stage?

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