Money on the markets

A maturing market amid the mayhem

Banks slide

December 15, 2009


The BSE banking index ended 2.9 percent lower on Tuesday, making it the top sectoral loser of the day.

Concerns over higher-than-expected inflation for November triggered worries the Reserve Bank of India may start tightening liquidity soon.

The fall in the Bankex was led by Andhra Bank (down 5.3 percent), Allahabad Bank (down 4.3 percent) and Indian Overseas Bank (down 3.7 percent).

Second-largest lender, ICICI Bank, ended 2.9 pct lower at 825 rupees.

Shares of SBI ended 3 percent lower with volumes of over 8,70,000 shares. The bank has paid 17.95 billion rupees as Oct-Dec advance tax.

The Bankex has risen over 70 percent for the year so far and over 3 percent since November.

Do you think the banking index will slide more on inflation concerns?

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