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Business News/ Markets / Stock Markets/  Stock market today: Why Bank stocks are rising ahead of US CPI data release — explained with two reasons
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Stock market today: Why Bank stocks are rising ahead of US CPI data release — explained with two reasons

Stock market today: Bank Nifty today opened upside and recorded an intraday rise of nearly 300 points

Stocks to buy today: Experts have recommended buying these banking stocks — SBI, HDFC Bank, ICICI Bank, and Canara Bank.Premium
Stocks to buy today: Experts have recommended buying these banking stocks — SBI, HDFC Bank, ICICI Bank, and Canara Bank.

Stock market today: After a heavy sell-off on Monday, banking stocks listed on Dalal Street attracted good buying interest during morning deals on Tuesday. The bank Nifty index today opened upside at 45,056 level and went on to touch an intraday high of 45,183 mark, logging an intraday rise of around 300 points within an hour of the opening bell.

According to stock market experts, banking stocks are rising due to oversold conditions and soft US CPI data buzz. They said that banking stocks have received a heavy beating in the recent few sessions, but after the soft Indian inflation data for January 2024, the market is expecting soft US CPI data as well. Hence, in the wake of soft US inflation, the market believes that the US Fed would be under pressure to go for the interest rate cut.

Also Read: Paytm stock sheds another 8.5% after Macquarie cuts target price to 275

Why banking stocks are rising today?

On reasons that are fueling banking shares of the Indian stock market, Saurabh Jain, Vice President — Research at SMC Global Securities said, "This rise in the banking stocks today can be attributed to two major reasons — soft Indian inflation data for January 2024 and soft US CPI data that is expected today. This buzz has fueled speculations about the US Fed rate cut in the near term. Hence, bulls are putting weight behind the banking stocks during Tuesday deals."

Connecting the soft US CPI data with the Indian stock market, Sandeep Pandey, Founder of Basav Capital said, "In the recently held RBI MPC meeting, one member had voted in favor of interest rate cut but rest members voted in favor of steady repo rate. As expected, if the US CPI data becomes soft, then in that case the US nFed would be under a lot of pressure to cut interest rates in the upcoming US Fed meeting. So, the rate cut by the US Fed is expected to get followed by a good number of central banks across the globe, which includes India's Reserve Bank of India (RBI)."

Also Read: Vibhor Steel Tubes IPO: GMP, review, subscription, other details. Apply or not?

Stocks to buy today

On banking stocks to buy today, Sandeep Pandey of Basav Capital said that one can look at SBI, HDFC Bank, ICICI Bank, and Canara Bank shares for a medium to long-term time horizon.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.lso 

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
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Published: 13 Feb 2024, 10:56 AM IST
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