India's financial stocks extend gains after RBI holds policy rate

Cholamandalam Investment and Finance

05/06/2026 05:58

** India's financial services .NIFTYFIN stocks marginally extend gains, rise as much as 1.2%
** Sub-index was up 0.7% ahead of the policy decision
** Reserve Bank of India keeps key policy rate unchanged, maintains "neutral" stance
** Benchmark Nifty 50 .NSEI up 0.3%
** RBI rate pause supportive for financials and public sector banks as it eases the risk of higher funding costs, sustaining credit demand
** Also reduces concerns over mark-to-market losses on bond portfolios, which can weigh on treasury income when yields rise
** Bajaj Finance BJFN.NS and Cholamandalam Investment CHLA.NS up 3.6% and 3%, respectively; top financial gainers
** Country's largest lender State Bank of India SBI.NS up 0.8%


 (Reporting by Vivek Kumar M)
 ((VivekKumar.M@thomsonreuters.com;))