Banking stocks hammered as RBI hikes repo rate

Posted By:
Subscribe to GoodReturns

Banking stocks hammered as RBI hikes repo rate
Banking stocks were hammered out of shape following the RBI move to hike repo rates. Repo rates are rates at which the RBI lends to banks and any hike in these rates normally leads to higher interest rates in the economy.

Banking shares which were hammered out of shape were Yes Bank which fell 11%, while Punjab National Bank lost 9%, Bank of India 8%, Axis Bank 7% and State Bank 5.25%.

Smaller PSU banking stocks that fell in trade were Oriental Bank of Commerce down 9%, IDBI Bank down 4%, while UCO Bank, Dena Bank, Vijaya Bank also lost sharply in trade.

It maybe recalled that on Thursday these banks had gained sharply following the Fed decision to put a hold on tapering. Today's fall almost wiped off most of the gains that the banking sector stocks saw on Thursday.

Story first published: Friday, September 20, 2013, 12:02 [IST]
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'