Nifty Bank Hits Record High, Tops 57,000 as RBI-LED RALLY In Bank Stocks Expends to Second Day

Stock market today: The Indian Stock Market Extended ITS Winning Streak to the Second Straight Session on Monday, June 9, Largely LED by Financials, as Investors Turned their focus to the sector after the rerserv branch of Indian (RBI) Delivered a Deeper-That-Expected 50 Basis Point Cut in the Repo Rate and An Unexpected 100 Basis Point Cut In the CRR Last Week, Lifting Expectations that BOTH SUVES WOLL HELP The Creator The economy and a rebound in banks’ earnings.

AMID This, All 11 Constituents of the Nifty Bank Index Opened In the Green, With Stocks Such as Idfc First Bank, Kotak Mahindra Bank, And Axis Bank Gaining as MUCH GAICH AS MUCH AS 3%, Pushing the INDEX PUST the INDEX PUST The INDEX PUST The INDEX PUST The INDEX PUST The INDEX PUST The INDEX PUST The INDEX PUST The INDEX PUST is First Time to Reach 57,049, Up Nearly 1%, and Building on Friday’s Solid 1.50% Gain.

The Indian Central Bank has been taking a series of steps to boost liquidity in the system, with the latest repo and crr cuts adding to the ingking measures. The rbi has infused over 7 Lakh Crore into the Banking System Through Omo Purchases in the last five months.

It has been injected funds Since Mid-January to Counter a Sharp Decline in Liquidity, which helped the banking system swing back into surplus from apral. Meanwhile, bank credit growth moderated to 12% year-on-yar in March 2025, Sharply Lower Than the 16.3% Expansion Recorded in the Same Period a year ago, According to the Latest Data from the Latest Data from the Reserve Bank of India (RBI).

Mid-sized banks and nbfcs seen as key gainers

Following the RBI’s Deeper-That-Expected 50 Basis Point Cut in the Repo Rate and A Surprise 100 Basis Point Reduction in the CRR, Global Brokerage Have Turned Incrected Incrended Incrend Particularly Mid-Sized Private Banks and Select NBFCs.

Nomura and UBS Flagged that Banks Such as au Small Finance Bank, Indusind Bank, And IDFC First Bank Stand to Gain the Most From Improved Liquidity Conditions, While Large Banks LIKS LIKS LIK BANK BANK BANK BANK BANK BANK BANK BANK BANK BAN Bank could also also benefit, especially that facing deposit growth constraints.

Jefferies Sees Potential Upside in Nims for Fixed-Rate lenders Such as Mahindra Finance, Chola Finance, and SBI Cards, Naming Bajaj Finance, Chola, Chola, Chola, Chola, Chola, Chola, Chola, Chola, Chola, Chola, Chola, Chola, Chola, Chola, Chola, Chola, Chola, Chola, Chola, Chola, Chola, Chola, and Shriram Housing Finance Among Top Picks.

Bernsstein believes the announcing tilt more favorite towards banks over NBFCs, While Citi Expects Durable Liquidity to Aid Signment for Large Private lenders.

IIFL and Goldman Sachs Highlighted The CRR Cut’s Likely Positive Impact on Nims, ROAS, And Bottom Lines, Estimating a Liquidity Infusion of 2.5 trillion. While the frontloading of rate cuts Signals CONCERN Over Growth, Analysts remain confident that the move enhances earnings visibility for the sector, particular for Mid-Tier Banks in Fy26.

“Frontloading of Monetary Easing Implies Nervousness Regarding The GDP Growth. While the expectation is that banks flush with more liquidity will want to lend more Yoy is unlikely to meaningfully Accelerate (Large Corporates Tapping Capital Markets vs. Banks, Slowdown in Home Loan Growth. Said Iifl.

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