Banking shares are under pressure falling by up to 7% after the Reserve Bank of India (RBI) on Wednesday has announced additional measures to support the Indian rupee by stemming foreign exchange outflows by Indian residents.
Axis Bank, YES Bank, Bank of Baroda, ICICI Bank, IndusInd Bank, Bank of India and Federal Bank are down 3-6% on the Bombay Stock Exchange (BSE).
The BSE banking index, Bankex, is down nearly 3% as compared to 1.72% fall in benchmark S&P BSE Sensex at 1000 hours.
Overseas direct investment (ODI) by Indian companies has been cut three-fourths, 100% from 400%, making it more difficult for local corporates to buy overseas assets.
RBI reduced the limit for remittances made by Resident Individuals, under the Liberalised Remittance Scheme (LRS Scheme), to $75,000 from $200,000 per financial year.
Among the individual stocks, Axis Bank has slummed nearly 7% to Rs 1,075 on BSE. The private sector bank has been also dropped from the MSCI standard and large cap indexes effective September 2. Removal from the index means the shares will not be included in funds that mirror the index.
YES Bank has dipped 5.3% to Rs 276, followed by Bank of Baroda (4% at Rs 501), while ICICI Bank, Bank of India and Canara Bank are down 3% each.
Axis Bank, YES Bank, Bank of Baroda, ICICI Bank, IndusInd Bank, Bank of India and Federal Bank are down 3-6% on the Bombay Stock Exchange (BSE).
The BSE banking index, Bankex, is down nearly 3% as compared to 1.72% fall in benchmark S&P BSE Sensex at 1000 hours.
Overseas direct investment (ODI) by Indian companies has been cut three-fourths, 100% from 400%, making it more difficult for local corporates to buy overseas assets.
RBI reduced the limit for remittances made by Resident Individuals, under the Liberalised Remittance Scheme (LRS Scheme), to $75,000 from $200,000 per financial year.
Among the individual stocks, Axis Bank has slummed nearly 7% to Rs 1,075 on BSE. The private sector bank has been also dropped from the MSCI standard and large cap indexes effective September 2. Removal from the index means the shares will not be included in funds that mirror the index.
YES Bank has dipped 5.3% to Rs 276, followed by Bank of Baroda (4% at Rs 501), while ICICI Bank, Bank of India and Canara Bank are down 3% each.
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