Money on the markets
A maturing market amid the mayhem
The BSE Sensex fell 2.3 percent on Thursday, with banking shares leading losses as fears of foreign funds’ withdrawals in the absence of any positive trigger weighed on investors’ minds.
State Bank of India and ICICI Bank led the decline in the broader market, dropping 4.3 percent and 4.4 percent respectively.
Shares in the banking index have gained over 20 percent so far this year, but any further monetary action by the Reserve Bank of India will weigh on the sector.
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The BSE Banking index ended down 0.5 percent on Tuesday, with stocks such as Union Bank, Canara Bank and Oriental Bank of Commerce slipping more than 3 percent.
Bigger players like ICICI slipped 0.9 percent but SBI bucked the trend and gained 0.8 percent in the session.
The BSE Banking Index fell 1.1 percent on Tuesday in a broader market that slipped nearly 1 percent on worries over the euro zone debt crisis.
Financials also reacted to RBI Deputy Governor Subir Gokarn’s comment that the central bank would continue tightening monetary policy at a steady pace.
It was a good day for banking counters with the Bankex gaining 1.6 percent and ending as the second best sectoral performer.
Financial counters rose on hopes that the economy, expected to expand 8.5 percent in the fiscal year beginning April 1, will boost demand for loans.
The BSE Sensex posts its first weekly gain in three weeks helped by India’s top lender SBI and Sensex heavyweight ICICI Bank.
Shares in SBI ended 3 percent higher at 2204 rupees posting its biggest rise in three weeks, while ICICI Bank which holds over 7 percent weightage in the 30-share Sensitive index ended 0.48 percent to 848 rupees.
The BSE Banking Index ended 1.7 percent higher on Friday while for the year it has gained over 70 percent.
The Sensex rose 1.5 percent on Wednesday to close above the 17,000 mark for the first time since May 2008.
On the sectoral front, the banking sector led the indices gaining 3.6 percent followed by the Auto index, which rose 2.1 percent. The Capital Goods ended 1.7 percent higher.
The BSE Sensex closed 2.28 percent lower on Friday, extending losses for the week to 3.25 percent.
Leading financial stocks like ICICI Bank and SBI pulled the Banking Index down, which registered a drop of nearly 4 percent – its 4th fall this week.