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Nifty PSU Bank index hits 8-month low; down 7% in one week

At 02:25 PM; Nifty PSU Bank index was down 2.8% as compared to 1.2% decline in Nifty 50 index.

SI Reporter  |  Mumbai 

Nifty PSU Bank index hits 8-month low; down 7% in one week

Shares of public sector banks (PSBs) continued to trade under pressure with index falling 7% in the past one week on concerns of the growth slowdown.

At 02:25 PM; 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.

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 from the 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.

ANDHRA BANK 56.80 58.75 -3.3
ORIENTAL BANK 121.75 125.65 -3.1
UNION BANK (I) 126.85 130.75 -3.0
BANK OF INDIA 139.60 143.70 -2.9
CORPORATION BANK 40.30 41.35 -2.5
ST BK OF INDIA 251.60 257.90 -2.4
BANK OF BARODA 139.20 142.55 -2.4
SYNDICATE BANK 63.15 64.65 -2.3
PUNJAB NATL.BANK 134.10 136.95 -2.1
IDBI BANK 52.50 53.50 -1.9
CANARA BANK 321.75 327.50 -1.8
ALLAHABAD BANK 66.50 67.65 -1.7
DENA BANK 30.80 31.30 -1.6

First Published: Wed, September 27 2017. 14:30 IST