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Bank index falls on probe report

November 24, 2010

The banking index ended 2.9 percent lower on reports pointing to a probe into loans issued by some financial institutions, adding to investor nervousness.

After market hours, the CBI arrested eight top officials from banks and financial firms on charges of taking bribes to grant corporate loans.

Shares in LIC Housing Finance closed 18.32 percent lower, while Central Bank of India ended 8 percent lower.

Today’s arrests dealt another blow to Indian markets which are already under pressure from a multi-billion dollar telecoms scam.

Do you think bank stocks are going to fall tomorrow?

Comments

In the first announcement, it was being called as a ‘housing loan scam’.Now it being called a case of bribery.This is purely a volatilty reaction of markets before expiry.The markets needed a trigger to fall,and got it thru so-called “breaking news”.

Nothing much to worry.Markets shall overcome expiry blues.

Posted by Bovespa | Report as abusive
 

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