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Last Updated : Aug 03, 2020 03:26 PM IST | Source: Moneycontrol.com

Banking stock under pressure; Kotak, IndusInd Bank top index losers; Bandhan Bank tumbles 11%

Kotak Mahindra Bank and IndusInd Bank shed 3 percent followed by RBL Bank, HDFC Bank, Federal Bank and Axis Bank.

The Indian stock market is trading in the red dragged by banking names on mixed expectations for an upcoming interest rate decision. Sensex is down 431.20 points or 1.15 percent at 37175.69, and the Nifty shed 111.60 points or 1.01 percent at 10961.90.

Among the sectors, the banking index shed over a percent dragged by Bandhan Bank which tumbled 10 percent after a CNBC-TV18 report said that the Bandhan Bank might sell as much as 20.9 percent equity via a block deal on August 3. The deal size for the Bandhan Bank block deal is Rs 10,500 crore, and the floor price has been set at Rs 311.10, the news channel reported.

The other losers included Kotak Mahindra bank and IndusInd Bank which shed 3 percent followed by RBL Bank, HDFC Bank, Federal Bank and Axis Bank.

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Kotak Bank, IndusInd Bank and Axis Bank are the top index losers while on the other hand, Bandhan Bank (9,39,68,624 shares), State Bank of India (3,46,09,846 shares) and Punjab National Bank (1,64,36,682 shares) are some of the most active stocks on NSE in terms of volumes.

Nifty Financial index was also down over a percent with the top losers being HDFC Life Insurance which shed 3 percent followed by Indiabulls Housing, Mahindra & Mahindra Financial Services and SBI Life Insurance.

Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors is of the view that after making a top of 23,200, the banking index corrected this week. It has been trading in a range of 2,000 points for the last 2 weeks. The index is having a line of parity support near 21,000 and one should be cautious on a decisive move below these levels. Though, in a very near term, a pullback to the range high looks possible.

He has buy recommendations on IDFC First Bank with target at Rs 32 and a buy also on RBL Bank with target at Rs 190. He also has a buy on Bandhan Bank with target of Rs 385 per share.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Aug 3, 2020 11:43 am
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