Wednesday 8 October 2008

Frontline banking stocks battered

Frontline banking stocks including HDFC Bank, ICICI Bank and State Bank of India were battered badly on Wednesday, following the severe downt
rend in early trade.

Despite efforts by Reserve Bank of India to improve liquidity in banking system early this week, HDFC Bank and ICICI Bank plunged nearly 10 per cent, while SBI fell 5.5 per cent mid-morning, on heavy selling pressure triggered by worries over worsening financial condition across the globe.

However, HDFC bank and SBI were still trading above their respective 52-week lows, while ICICI Bank has hit a fresh 52-week low.

Selling emerged due to threat of economic recession. Private sector banks were hit badly on expectation that their growth would be hit due to their exposure to unsecured loans, technical analysts said.

At 11:25 am, HDFC Bank was down by11.5 per cent at Rs 998, ICICI Bank weaker by 9.83 per cent at Rs 437.5 and State Bank of India lost 5.79 per cent at Rs 1326.50 on BSE.

Source: EconomicTimes

Posted by Harsh at 01:07

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