Worries over foreign assets seizure by Russia put pressure on the markets. Global cues were also weak and not supportive. FIIs sold as much as Rs 1133 crores on Friday, while domestic institutions bought aggressively on the day.
PSU banking stocks fell sharply after worries over being affected by loans to companies that could be affected by the Supreme Court verdict on coal allocation.
PSU banking stocks like IDBI Bank and Oriental Bank of Commerce came in for heavy bear hammering. Other stocks that fell were the metal stocks after the Supreme Court announced cancellation of coal blocks. Jindal Steel aw heavy bear hammering and the stock hit a new 52-week low.
Going forward markets are likely to react to the RBI credit policy to be held on Sept 30. Not many expect any surprises with the RBI expected to largely hold key policy rates steady.
But, the RBI has known to surprise, and one can even expect a rate cut from the RBI given that interest rates have fallen significantly in the last couple of months.
Banking stocks may even react to any dovish statements from the RBI. The week in any case is likely to be very volatile. One will not be surprised if the Sensex once again conquers the 27,000 mark.