Sensex falls over 150 points; Yes Bank, RBL Bank shares plunge
1 min read 30 Sep 2019, 09:20 AM ISTBanking and auto stocks led the decline todaySelling pressure was also seen in metal and pharma shares
PremiumIndian shares fell today after a two-week rally, dragged down by declines across banking, auto, metal and pharma shares. The Sensex finished 155 points lower at 38,667 while Nifty settled 0.3% lower at 11,477. Yes Bank, RBL Bank and Indiabulls Housing Finance led the decline in financials. Earnings announcements for the quarter ended September are scheduled to begin from next week.
Shares in Lakshmi Vilas Bank Ltd fell 4.9% to their lowest since April 2009 on after RBI initiated prompt corrective action on the lender. Under PCA, banks are mandated to cut lending to corporates and focus on reducing concentration of loans to certain sectors.
Indiabulls Housing Finance, which had proposed to merge with Lakshmi Vilas Bank, slumped 34%.
Shares in private-sector lender Yes Bank fell 15%. The decline comes despite the bank saying that it has received approval from RBI to increase its authorised share capital in order to raise funds.
Another private sector lender RBL Bank also plunged 10%, dragging down the Nifty Bank index by over 2%.
Ajit Mishra, vice president of research at Religare Broking, expects markets to consolidate further. "We feel the upcoming RBI monetary policy review meet could trigger the next directional move. Meanwhile, we suggest continuing with stock-specific trading approach and focusing more on the index majors for short term trades," he said.
The RBI is widely expected to cut interest rates when it announces monetary policy on Friday.
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