Sensex at mid-day
The NSE Bank index heads to its first decline in four sessions, after the RBI issued guidelines on capital ratios tied to the upcoming Basel III regulations.
Banks have to maintain core Tier I capital of at least 7% of their risk weighted assets on an ongoing basis, the RBI said on Wednesday.
Hero MotoCorp falls 7.4% after missing earnings estimates and on worries about the impact from the expiration of a state tax exemption it currently enjoys in Haridwar of northern India.
Hero’s Haridwar plant currently contributes about 35% of overall production. The two-wheeler said the expiration of the exemption would raise its taxes to about 23% in fiscal 2014 versus 16% for the year ending in March 2013, higher than analyst estimates.
ICICI Bank shares fell 0.7%, State Bank of India dropped 0.94%.
