The Indian stock market has opened in the green today. The BSE Sensex is at 57888 points, 1.89% high, and the NSE Nifty is at 17,280.85 points, 1.80% higher than the previous close.
The HDFC twins, i.e., Housing Development Finance Corp Ltd (HDFC Limited) and HDFC Bank Limited reached highs of ₹ 2,394.40 and ₹ 1,489.00 respectively. Currently, HDFC Limited is trading at ₹2392.80, up by 4.39%, while HDFC Bank Limited is trading at ₹ 1,487.95, up 2.75%.
On Wednesday, the Federal Reserve, a.k.a, the US Fed, raised its benchmark interest rates by 25 basis points for the first time since 2018 and has signalled that it will increase these rates further, to curb inflation that is at a multi-decadal high.
As a result, the RBI could have to increase interest rates to curb inflation and reduce the supply of money. Banks increase interest rates on loans in this situation and may end up making more money.
Recently, the Reserve Bank of India lifted 11 restrictions that were imposed on HDFC Bank’s digital platform. This is a green signal, as HDFC bank is all set for new launches to strengthen its digital infrastructure over the next two to three quarters.
Nitin Aggarwal, an analyst from Motilal Oswal Financial Services said “Removal of restrictions will address a key overhang on the stock as the bank was losing ground on digital initiatives compared to its competitors.”
HDFC Limited is a major housing finance provider in India and has a presence in banking, asset management, insurance, venture capital, deposits, loans and more.
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