Domestic stocks fell for the second day On Wednesday, dipping 1.5 per cent to 11,952.75, as some investors judged the 46 per cent advance in the benchmark Sensex from this year’s low in March to be excessive.
ICICI Bank, the nation’s second-largest lender, slumped 5.2 per cent to Rs 539.60 after its stock rating was cut by Macquarie Group to underperform, saying the recent rally was overdone. HDFC Bank, the country’s No. 3 lender, dropped 1.8 per cent.
The S&P CNX Nifty Index on the National Stock Exchange slid 1 per cent to 3,625.05. The BSE 200 Index declined 1.5 per cent to 1,401.81. The BSE 18-member banking index has advanced 68 per cent since March 9, when the benchmark index fell to its lowest level this year. In comparison, the Sensex has gained 46 per cent. ICICI’s relative strength index, which measures how rapidly prices rose or fell during the specified period, climbed above 70 on May 4. Some investors regard readings at 70 and above as a signal to sell.