Financial Daily from THE HINDU group of publications
Friday, Apr 29, 2005
Financial Daily from THE HINDU group of publications Friday, Apr 29, 2005 |
|
|
|
|
|
Markets
-
Stock Markets Reverse repo rate hike pulls down bank stocks Our Bureau
Mumbai , April 28 BANKS shares fell sharply on Thursday after the RBI announced a hike in reverse repo rate by 25 basis points. Brokers and analysts said the hike in reverse repo rates indicates a rise in interest soon, which in turn could affect the banks treasury income. There was also a heavy sell-off in the debt market with bond yields hardening after the announcement of credit policy. The sell-off in bank's stocks was seen from the drop of 2.49 per cent for the BSE Bankex Index, the highest fall among all sectoral indices of the exchange in today's trading. There was selling in most of the bank's stocks but the worst affected were public sector banks. These banks have high holding in Government securities. Sell-off in banks stocks was led by State Bank of India which was down by 2.37 per cent to close at Rs 604.25. Other banks in the loser list included Bank of India (down 7.20 per cent at Rs 86.30), PNB (down 4.36 per cent at Rs 351.95), OBC (down 4.50 per cent at Rs 271.50). ICICI Bank, Union Bank, Bank of Baroda were others in the loser list. Brokers and analysts said there is a possibility of hardening of interest rates and if this happens, it would affect the banks income. "Worst affected would be the banks which have high holding of Government securities as rise in yields results in lower profits" said a top official of a domestic broking firm.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|