Bank stocks take a hammering

CRR HIKE FALLOUT

Bank stocks were hammered today, with the Bombay Stock Exchange (BSE) Bankex ending the biggest loser among sectoral indices. In an otherwise positive market, the Bankex fell 1.32 per cent.

The heavyweight State Bank of India scrip was the third biggest loser in the 30-scrip Sensex basket, falling 2.22 per cent to Rs 456.35. The ICICI Bank scrip fell 1.52 per cent to Rs 264.85 and HDFC Bank was down 0.50 per cent to Rs 387.70.

Nimish Shah, director and CEO, Parag Parikh Financial Advisory Services, said, "Worries over liquidity drying up because of the CRR hike dampened spirits and concerns that high inflation would lead to a subsequent rise in interest rates added to the negative sentiment in bank scrips."

Among others, the Oriental Bank of Commerce scrip lost 0.94 per cent to Rs 236.10, Bank of Baroda lost 0.53 per cent to Rs 179.00, but the South Indian Bank scrip gained 3.76 per cent to Rs 45.55 and the State Bank of Mysore stock gained 2.39 per cent to Rs 1,540. Bank Of Rajasthan gained 2.34 per cent to Rs 37.10.