The Bank Nifty reclaimed 55,000 mark on October 1 after the Reserve Bank of India kept the interest rate unchanged at 5.5 percent for the second consecutive time and the lender also proposed a raft of changes for bank lending. The sharp rally was led by Kotak Mahindra Bank, ICICI Bank and HDFC Bank, rising up to 3 percent intraday.

At 12:05 pm on October 1, Bank Nifty was trading 700 points, or 1.3%, higher at 55,350.

Announcing the fourth bi-monthly monetary policy of the current fiscal, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) unanimously decided to keep the short-term lending rate or repo rate unchanged at 5.5 percent with a neutral stance.

RBI has proposed to expand scope of capital market lending by banks to provide enabling framework to finance acqui

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