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A maturing market amid the mayhem
Bank stocks corrected on Thursday and the banking index ended down 1.2 percent, as the overall market slipped on profit booking.
SBI and ICICI Bank closed down 0.2 percent and 2.3 percent respectively. HDFC Bank and mortgage lender Housing Development Finance lost 0.6 percent.
Yes Bank gained 1.3 percent in trade, the top bankex gainer, while IndusInd Bank slipped 3.6 percent and ended as top loser.
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The BSE Banking Index closed 0.34 percent lower on Monday in a broader market that closed 1.08 percent down at 17,400 points.
Top lenders State Bank of India and ICICI Bank fell 0.7 percent and 0.2 percent respectively, a day ahead of the Reserve Bank of India (RBI) policy review.
BSE Banking Index ended 1.16 percent higher on Tuesday powered by gains in India’s top private lender, ICICI Bank which contributed most of the rise.
Shares in ICICI Bank, (up 1.9 percent), SBI, (up 0.9 percent), Yes Bank, (up 4.3 percent), Kotak Mahindra Bank, (up 2.04 percent) and Axis Bank, (up 1.34 percent).
The RBI on Tuesday asked banks to increase the minimum provision ratio for bad debts to 70 percent from 10 percent by September 2010.
The BSE banking index dropped 1.2 percent on Wednesday in a broader market which ended flat.
The benchmark 30-share Sensex has more than doubled from the lows in early March, registering a rise of more than 78 percent with foreign funds infusing nearly $14 billion in Indian equities.
The Sensex plunged 5.8 percent on Monday as the higher-than-expected fiscal deficit announced by the government in the Union budget disappointed investors.
The 30-share sensitive index swung from an intra-day high of 15,097 to an intra-day low of 13,959 and closed 870 points lower at 14,043. The fifty-share Nifty ended 5.84 percent down at 4,165.
The stock market was choppy today as slipping Asian stocks and weak U.S. manufacturing data sparked profit-taking.
Asian stocks fell for a second day after weak U.S. factory data and news of record job losses in Europe raised concerns about the world economy.
The Sensex fell more than 3 percent early on Tuesday paring yesterday’s gains, but got right back into action on strong domestic buying and closed 0.1 percent up with support from positive global cues.
The benchmark swung from 13,840 in early trade to an intra-day high of 14,930 and then closed at 14,302 on profit taking. The index had gained more than 17 percent on Monday. The Nifty declined to 4,318.45, down 4.7 points.
The BSE Sensex closed 0.74 percent lower on Tuesday, tracking weak Asian markets and a downward bias of growth forecast by the RBI.