Sensex Trades Flat; Banking Stocks Fall On New RBI Norms

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Benchmark indices opened the day weak, as global sentiments were weakish and new CRR norms ensured that banking stocks fell in trade.

Sensex Trades Flat;  Banking Stocks Fall On New RBI Norms
The Sensex was trading with losses of 54 points, while the Nifty fell 16 points in trade.

Leading the set of losers in trade were some of the banking stocks like State Bank of India, ICICI Bank and HDFC Bank.

The fall was largely on the back of direction from the Reserve Bank of India (RBI) to increase the CRR provision for banks. This is expected to suck liquidity from the banks, which could dent margins of the players.

Among the biggest losers of course were stocks from the PSU Banking space like Punjab National Bank (down 2.56 per cent) and Bank of Baroda and Bank of India, which lost 3 per cent each.

Among the early gainers in trade were Asian Paints (up 2 per cent), Gail, Hero Motor Corp and Zee Ltd.

Shares in Ricoh fell as much as 4 per cent, after the company terminated the employment of CFO Arvind Singhal. Among the non index stocks, ARSS rallied as much as 8 per cent, after reports that the company got an order worth Rs 51.44 crore.

Meanwhile, the rupee opened marginally higher at 68.43 to the dollar, as against its previous close of 68.46 to the dollar.

Read more about: sensex, nifty
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