RBI’s measures on rupee spread gloom in markets

[1]

Mumbai: Banking stocks were battered badly on the bourses after the Reserve Bank of India (RBI) announced additional measures to suck liquidity in a bid to stabilise rupee. This pulled the markets down by over one per cent on Wednesday.
However, following the RBI measures, the rupee posted its biggest single day gain in a month gaining 63 paise against the US dollar to end the session at 59.13 per dollar.
“Due to the measures announced by RBI, banks having higher bulk borrowing would get impacted more as bond yields, commercial papers and certificate of deposits rates are likely to rise sharply. Thus, banks and NBFC stocks sold off sharply today. Even other sector stocks that are sensitive to interest rates witnessed selling pressure,” observed Sanjeev Zarbade, vice president, research, Kotak Securities.
The Sensex fell 211.45 points or 1.04 per cent to close at 20,090.68 as ICICI Bank and HDFC Bank slumped 3.73 per cent and 3.40 per cent respectively. Other private sector banks like Yes Bank and Axis Bank tanked 12.63 per cent and 6.55 per cent respectively on the BSE.
The Nifty slipped below its psychological 6,000 level to at 5,990.50, down 87.30 points or 1.44 per cent. “Galbraith came about for a slightly odd reason. When I was a child, I really wanted to be called ‘Ella Galbraith’, and I’ve no idea why.” Rowling said she felt that she had successfully channeled her inner bloke”.