Equity Alert: Bank shares decline on fears of monetary tightening
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K.Karthik Raja
May 22, 2008, 6:07:40 AM5/22/08
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Equity Alert: Bank shares decline on fears of monetary tightening
MUMBAI--11:34AM--Bank shares were down amid fears of further
monetary
tightening steps by RBI as inflation is unlikely to be tamed soon
given rising
crude oil prices, dealers said.
State Bank of India was down 1%, while Punjab National Bank and
ICICI Bank
were down around 3% each. HDFC Bank fell 2%.
"There have also been some rumours of a cash reserve ratio hike
doing the
rounds," said a dealer.
However, another dealer attributed the fall in bank shares to lack
of
clarity over how the farm loan waiver will be rolled out.
"It is best to book profits in banks and sit on cash as outlook
for the
sector is unclear in the near-term," said a dealer.
He pegged support for SBI at 1,605 rupees, and for ICICI Bank and
PNB at
865 rupees, and 517 rupees, respectively.
MUMBAI--11:34AM--Bank shares were down amid fears of further
monetary
tightening steps by RBI as inflation is unlikely to be tamed soon
given rising
crude oil prices, dealers said.
State Bank of India was down 1%, while Punjab National Bank and
ICICI Bank
were down around 3% each. HDFC Bank fell 2%.
"There have also been some rumours of a cash reserve ratio hike
doing the
rounds," said a dealer.
However, another dealer attributed the fall in bank shares to lack
of
clarity over how the farm loan waiver will be rolled out.
"It is best to book profits in banks and sit on cash as outlook
for the
sector is unclear in the near-term," said a dealer.
He pegged support for SBI at 1,605 rupees, and for ICICI Bank and
PNB at
865 rupees, and 517 rupees, respectively.
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