Yes Bank, RBL Bank fall 4-9% after Morgan Stanley turns underweight on rising rates, NBFC turmoil

Global brokerage house Morgan Stanley turned underweight on private sector lenders Yes Bank and RBL Bank amid rising interest rates and NBFC turmoil. It has assigned equal-weight rating for AU Small Finance Bank.

Yes Bank shares fell 4.16 percent, RBL Bank 8.85 percent and AU Small Finance Bank declined 6.9 percent intraday.

Against of these stocks, the research house prefers bigger names like ICICI Bank, HDFC Bank, SBI and Axis Bank as it believes rising interest rates and NBFC crisis are set to improve large banks positioning.

Liquidity advantage should fuel further acceleration in pre-provisioning operating profit growth, it said.

Country's largest lenders ICICI Bank, HDFC Bank, SBI and Axis Bank shares gained 2.48 percent, 2.78 percent, 2.17 percent and 1.57 percent intraday.