India's financials extend gains; Citi sees benefits from likely CRR cut

Bank of Baroda

04/12/2024 07:27

** India's financials  .NIFTYFIN  rise about 1%, on track to
extend their three-session winning streak
    ** Financials have gained 2.6% in four sessions, leading
markets higher
    ** Citi sees improving prospects for rate reductions as a
positive for the country's lenders
    ** Markets are focusing on the Reserve Bank of India's
response to domestic growth slowdown in its policy decision on
Friday - Citi
    ** "There are several justifications for RBI to consider a
cash reserve ratio (CRR) cut in December policy as a step
towards easing," says Citi
    ** Says a 25-50 basis-point CRR cut could support margins of
lenders and would be positive sentiment for the sector
    ** Citi sees HDFC Bank  HDBK.NS , Axis Bank  AXBK.NS ,
Federal Bank  FED.NS  and Bank of Baroda  BOB.NS  as top
beneficiaries of a potential CRR cut
    ** HDBK gains 1.7%, contributing the most to Nifty 50 gains
    ** FED and BOB rise about 1%; Axis Bank trading flat - LSEG
data

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))