Photo: Mint
Photo: Mint

Private bank stocks shine on Nifty 50, IT stocks fall

  • ICICI Bank rose 4% to hit a fresh record high after its weight was increased in the MSCI EM Index
  • Nifty Bank index rose 1% to 30,923.05, while S&P BSE Bankex index was 1.2% higher at 35, 027.09 points

NEW DELHI : Private banks were among the top gainers on the Nifty 50 in afternoon trade on Friday, while stocks of information technology companies were the biggest laggards on the index.

ICICI Bank rose 4% to hit a fresh record high after its weight was increased in the MSCI EM Index. Yes Bank was up 6% even as Moody’s placed the private lender’s foreign currency issuer rating of Ba3 under review downgrade. Indusind Bank gained 5%, Kotak Mahidnra Bank 1% and State Bank of India 0.6%.

Nifty Bank index rose 1% to 30,923.05, while S&P BSE Bankex index was 1.2% higher at 35, 027.09 points.

IT stocks were in the red after the US announced hiking H1-B visa fee by $10. H1-B is the most sought after visa that Indian companies use to deploy their Indian staff on overseas projects. It comprises a significant item of their overall costs. TCS was down by over 1%, Infosys 0.8%, Wipro 0.65% and HCL Technologies 1.27% on BSE.

Nifty IT index was down around 1% at 15494.55. The BSE Information Technology index was down 0.74% at 15,360.87 points.

At 219pm, the Nifty was down 0.29% at 11,977.80, while the BSE Sensex was down 0.3% at 40,529.84. Benchmark equity indices opened marginally lower on Friday after Moody's cut India's rating outlook to negative from stable citing growth concerns.

Moody's lowered nation's outlook to negative from stable, while retaining the issuer rating at Baa2. The rating agency said its decision to change the outlook to negative reflects increasing risks that economic growth will remain materially lower than in the past, partly reflecting lower government and policy effectiveness at addressing long-standing economic and institutional weaknesses, leading to a gradual rise in the debt burden from already high levels.

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