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Banking counters under pressure

April 12, 2010

Various banking stocks were under pressure on Monday on concerns the Reserve Bank of India (RBI) would further hike interest rates.

The Bankex closed down 0.84 percent with 12 of 17 components in red.

Allahabad Bank and Bank of Baroda were the worst performers in the index, losing over 3 percent. Bigger players like ICICI Bank dropped 1.2 percent while SBI slipped 0.7 percent in trade.

Five stocks in the index including private sector lender HDFC Bank ended the day in green.

The RBI had hiked its short term borrowing rates on March 19 and the central bank is expected to increase rates further in April, according to a Reuters poll.

The earning season kicks off on Tuesday. In such an environment, would you place your bets on banking stocks?

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