Banking Stocks Fall As RBI Sounds Hawkish

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Banking shares fell across the board as the Reserve Bank of India (RBI) sounded hawkish, raising worries on further monetary easing.

Banking Stocks Fall As RBI Sounds Hawkish
IndusInd Bank: Quotes, News
BSE 1184.45BSE Quote18.15 (1.53%)
NSE 1183.10NSE Quote18.8 (1.59%)
YES Bank: Quotes, News
BSE 1250.00BSE Quote38.8 (3.10%)
NSE 1248.45NSE Quote41.8 (3.35%)
While the RBI did cut rates it said that the interest rates were frontloaded. This spooked the markets, though the interest rate cut was on expected lines.

IndusInd Bank and Canara Bank were the worst hit with both the stocks falling more than 2 per cent each.

Other banking stocks that declined were Yes Bank, State Bank of India, Punjab National Bank, Bank of India and Axis Bank.

The RBI may not cut interest rates through the entire year which left analysts worried that banking stocks may see further downslide, especially since most of the banks are grappling with non performing assets, especially the PSBs.

Read more about: indusind bank, yes bank, canara bank
Story first published: Tuesday, June 2, 2015, 12:30 [IST]
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