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Investors had built long positions ahead of the Monetary Policy, which may have led to some profit booking in banking stocks.
The Bank Nifty was down 1.6 per cent led by losses in HDFC Bank, ICICI Bank and Yes Bank.
But, the worst affected were the PSU banking names most of which slid more than 2-3 per cent. Prominent among the losers were Oriental bank, Union Bank, Punjab National Bank and Canara Bank.
It's likely that the hawkish tone by the RBI, particularly with regards to inflation management may have affected sentiments.
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