How NIFTY Bank reacted the previous week – Know in details

NIFTY Bank, an important index tracking the performance of the banking sector in India, witnessed some volatility last week. Despite a minor dip on December 6, closing at ₹53,509.50, the index experienced some fluctuations that reflect the challenges faced by the financial sector. On Friday, December 6, the index lost 94.05 points or 0.18%.

The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) on Friday, December 6, reduced the cash reserve ratio (CRR) by 50 basis points (bps), bringing it down to 4% from the previous 4.5%. This move is aimed at enhancing liquidity in the financial system.

The CRR represents the proportion of a bank’s total deposits that must be held as liquid cash with the RBI as a reserve.

The RBI’s MPC, which convened in Mumbai, also decided to leave the Repo rate – the key policy rate – unchanged at 6.5%. The decision was made with a 4-2 majority, marking the eleventh consecutive monetary policy meeting in over 22 months to keep the Repo rate steady.

As we can see from the sectoral distribution of the NIFTY Bank Index, HDFC Bank and ICICI Bank continue to be dominant players, holding substantial weightage. The index is critical for investors looking to gauge the performance of major Indian banks, as it includes top names such as Kotak Bank, Axis Bank, and SBI.

Nifty Bank Historical Data