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Sensex edges higher over RBI's CRR move

Indian shares edged up with lenders being the biggest drag after RBI unexpectedly ordered banks to maintain CRR

Reuters 

Sensex edges higher over RBI's CRR move

Indian edged up on Monday with lenders being the biggest drag after the central bank unexpectedly ordered banks to deposit their extra cash with it, although overall sentiment was upbeat as Asian advanced.

The on Saturday asked banks to maintain a temporary incremental (CRR) of 100% to absorb excess liquidity from the system after the government's move to withdraw larger banknotes sparked a surge in deposits.

The PSU Bank Index, an index of state-run lenders, fell as much as 4.43% to its lowest since Nov. 9 as the move is likely to deprive banks of earning interest on funds parked with the RBI. The Bank index fell as much as 1.73%.

Meanwhile, the benchmark 10-year bond yield rose as much as 15 basis points on the news.

"It (move by RBI) is a short-term measure... Sentiment would remain weak," said Gaurang Shah, vice president, Geojit BNP Paribas Financial Services.

The broader was up 0.17% at8,127.85 as of 0602 GMT with Bank of Baroda and ICICI Bank being the biggest losers.

The benchmark BSE was 0.14% higher at 26,352.47 after falling as much as 0.51% earlier in the session.

Lenders were among the biggest decliners with State Bank of India down 1.74%, while Bank of Baroda fell 2.47%.

However, oil retailers advanced after Brent crude futures fell as much as 2% in early Asian trade, following on from a 3.6% fall on Friday, as doubts arose over whether the Organization of the Petroleum Exporting Countries would reach a deal later this week.

Bharat Petroleum Corp Ltd rose 3.20%.

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Sensex edges higher over RBI's CRR move

Indian shares edged up with lenders being the biggest drag after RBI unexpectedly ordered banks to maintain CRR

Indian shares edged up with lenders being the biggest drag after RBI unexpectedly ordered banks to maintain CRR

Indian edged up on Monday with lenders being the biggest drag after the central bank unexpectedly ordered banks to deposit their extra cash with it, although overall sentiment was upbeat as Asian advanced.

The on Saturday asked banks to maintain a temporary incremental (CRR) of 100% to absorb excess liquidity from the system after the government's move to withdraw larger banknotes sparked a surge in deposits.

The PSU Bank Index, an index of state-run lenders, fell as much as 4.43% to its lowest since Nov. 9 as the move is likely to deprive banks of earning interest on funds parked with the RBI. The Bank index fell as much as 1.73%.

Meanwhile, the benchmark 10-year bond yield rose as much as 15 basis points on the news.

"It (move by RBI) is a short-term measure... Sentiment would remain weak," said Gaurang Shah, vice president, Geojit BNP Paribas Financial Services.

The broader was up 0.17% at8,127.85 as of 0602 GMT with Bank of Baroda and ICICI Bank being the biggest losers.

The benchmark BSE was 0.14% higher at 26,352.47 after falling as much as 0.51% earlier in the session.

Lenders were among the biggest decliners with State Bank of India down 1.74%, while Bank of Baroda fell 2.47%.

However, oil retailers advanced after Brent crude futures fell as much as 2% in early Asian trade, following on from a 3.6% fall on Friday, as doubts arose over whether the Organization of the Petroleum Exporting Countries would reach a deal later this week.

Bharat Petroleum Corp Ltd rose 3.20%.

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Business Standard
177 22

Sensex edges higher over RBI's CRR move

Indian shares edged up with lenders being the biggest drag after RBI unexpectedly ordered banks to maintain CRR

Indian edged up on Monday with lenders being the biggest drag after the central bank unexpectedly ordered banks to deposit their extra cash with it, although overall sentiment was upbeat as Asian advanced.

The on Saturday asked banks to maintain a temporary incremental (CRR) of 100% to absorb excess liquidity from the system after the government's move to withdraw larger banknotes sparked a surge in deposits.

The PSU Bank Index, an index of state-run lenders, fell as much as 4.43% to its lowest since Nov. 9 as the move is likely to deprive banks of earning interest on funds parked with the RBI. The Bank index fell as much as 1.73%.

Meanwhile, the benchmark 10-year bond yield rose as much as 15 basis points on the news.

"It (move by RBI) is a short-term measure... Sentiment would remain weak," said Gaurang Shah, vice president, Geojit BNP Paribas Financial Services.

The broader was up 0.17% at8,127.85 as of 0602 GMT with Bank of Baroda and ICICI Bank being the biggest losers.

The benchmark BSE was 0.14% higher at 26,352.47 after falling as much as 0.51% earlier in the session.

Lenders were among the biggest decliners with State Bank of India down 1.74%, while Bank of Baroda fell 2.47%.

However, oil retailers advanced after Brent crude futures fell as much as 2% in early Asian trade, following on from a 3.6% fall on Friday, as doubts arose over whether the Organization of the Petroleum Exporting Countries would reach a deal later this week.

Bharat Petroleum Corp Ltd rose 3.20%.

image
Business Standard
177 22

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