At 02:25 PM; Nifty PSU Bank index, the largest loser among sectoral indices, was down 2.8% at 3,034, as compared to 1.2% decline in the benchmark Nifty 50 and 1.7% fall each in Nifty Bank and Nifty Private Bank index.
Nifty PSU Bank index hit its eight-month low of 3,030 on the National Stock Exchange (NSE) in intra-day trade. The index was trading at its lowest level since January 23, 2017.
State Bank of India (SBI), Andhra Bank, Union Bank of India, Bank of India, Oriental Bank of Commerce and Bank of Baroda from the Nifty PSU Bank index were down in the range of 2% to 3%.
The rating agency CRISIL has trimmed its fiscal 2018 growth forecast for India by 40 basis points to 7% from 7.4% earlier, after data for the first quarter showed GDP (gross domestic product) growth at 5.7%, the slowest in the past three years.
The demonetisation-driven cash crunch hurt economic growth, especially small enterprises, while the imminent rollout of the Goods and Services Tax (GST) spurred destocking and a slowing of production brought down manufacturing growth.
“Indian economy can only grind its way up in an environment of subdued global growth and weak domestic investments. This fiscal would see some added headwinds in the form of GST related disruptions, even as the economy tries to recover from the impact of last year’s demonetisation drive,” CRISIL said in recent report.
The rating agency believes the sharp decline in growth in the first quarter is transitory and the economy will grind up slowly over the next few quarters as the impact of demonetisation and destocking fades. The Purchasing Manager’s Index (PMI) for August already signals a pick-up in manufacturing activity, it added.
|UNION BANK (I)||126.85||130.75||-3.0|
|BANK OF INDIA||139.60||143.70||-2.9|
|ST BK OF INDIA||251.60||257.90||-2.4|
|BANK OF BARODA||139.20||142.55||-2.4|