A minimal impact was felt by the market following the declaration of the credit policy by the Reserve bank of India, even as PSU bank stocks flopped following a declinein bond prices as a result of the surprise hike in short-term rates by the apex bank.
PSU bank scrips witnessed a broad-based decline. State Bank of India was down 2.5% to Rs 604.25. Select PSU bank stocks declined sharply. Allahabad Bank lost 7.7% to Rs 76.45, Bank of India shed 7% to Rs 86, Union Bank of India (UBI) shed 6.7% to Rs 103, Indian Overseas Bank shed 5% to Rs 73.30, Bank of Baroda lost 4.8% to Rs 181, Oriental Bank of Commerce shed 4.3% to Rs 272, and Punjab National Bank lost 4% to Rs 352.90.
PSU banks slumped as bond prices declined after RBI surprised the market by announcing a 25-basis hike in reverse repo rate to 5%. Reverse repo rate is the short-term benchmark interest rate. RBI left bank rate, which is used to price medium- and long-term loans unchanged at 6%, the lowest it has been in three decades.
Among private sector banks, ICICI Bank lost 2.4% to Rs 375.10. HDFC Bank shed 0.33% to Rs 536.65. But housing finance major HDFC advanced 2.5% to Rs 748.85.
PSU bank scrips witnessed a broad-based decline. State Bank of India was down 2.5% to Rs 604.25. Select PSU bank stocks declined sharply. Allahabad Bank lost 7.7% to Rs 76.45, Bank of India shed 7% to Rs 86, Union Bank of India (UBI) shed 6.7% to Rs 103, Indian Overseas Bank shed 5% to Rs 73.30, Bank of Baroda lost 4.8% to Rs 181, Oriental Bank of Commerce shed 4.3% to Rs 272, and Punjab National Bank lost 4% to Rs 352.90.
PSU banks slumped as bond prices declined after RBI surprised the market by announcing a 25-basis hike in reverse repo rate to 5%. Reverse repo rate is the short-term benchmark interest rate. RBI left bank rate, which is used to price medium- and long-term loans unchanged at 6%, the lowest it has been in three decades.
Among private sector banks, ICICI Bank lost 2.4% to Rs 375.10. HDFC Bank shed 0.33% to Rs 536.65. But housing finance major HDFC advanced 2.5% to Rs 748.85.