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Shares of bank license applicants under pressure, IDFC at four-year low

IDFC, Adyta Birla Nuvo, LIC Housing Finance, Bajaj Finance and Reliance Capital are down by 3-14% on BSE.

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SI Reporter Mumbai
Last Updated : Aug 27 2013 | 1:38 PM IST
Shares of companies that applied for a banking license are under pressure on the bourses with most of frontline stocks trading lower on the Bombay Stock Exchange (BSE).

IDFC, Adyta Birla Nuvo, LIC Housing Finance, Bajaj Finance, Srei Infrastructure Finance, Reliance Capital, India Infoline and JM Financials are down by 3-14%.

BS Bank Aspirex, a newly launched index by Business Standard was down 4.4% as compared to 2.5% fall in the BSE benchmark S&P BSE Sensex at 1321 hours.

IDFC, the most influential stock in this pack with 15.82% weightage, was the largest loser. The stock of infrastructure finance company has tanked nearly 14% at Rs 82, its lowest value since May 2009 on BSE.

The stock has fallen 21% in past two trading sessions after the company barred fresh purchases of its shares by foreign institutional investors (FIIs) and non-resident Indians (NRIs). The company also revised the ceiling on investment by FIIs and NRIs to 54% from 74%.

IDFC imposed these restrictions to help it meet the Reserve Bank of India’s (RBI) restriction on foreign investment (at less than 50% for new banks) in case it gets a license.

Among the other individual stocks, Bajaj Finance has dipped 7% to Rs 1,041, followed by LIC Housing Finance (down 6% at Rs 166), Aditya Birla Nuvo (5% at Rs 1,070) and Reliance Capital (3% at Rs 305).
 

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First Published: Aug 27 2013 | 1:35 PM IST

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