Banking shares slide as bond yields surge
YES Bank, IndusInd Bank, Axis Bank, BoI, BOB, Punjab National Bank and Federal Bank are trading lower by 3-7% on NSE.
 "Banking shares slide as bond yields surge")
Banking shares continued to slide further in trade today with most the frontline stocks trading at their respective multi-year lows as yields on government bonds surged.
YES Bank, IndusInd Bank, Axis Bank, Bank of India, Bank of Baroda, Punjab National Bank and Federal Bank are trading lower by 3-7% on the National Stock Exchange (NSE).
The NSE banking share index, Bank Nifty, was down 2.3% at 8,930 as compared to 1.7% fall in benchmark CNX Nifty at 0924 hours. The index hit low of 8,860 during intra-day trades, its lowest level since January 17, 2012.
Most of the frontline banking stocks has fallen more than 25% after the recent measures taken by the Reserve Bank of India (RBI) to tighten liquidity to stabilise the Indian rupee. The Bank Nifty has tanked 24.25% since July 15, as compared to nearly 12% fall in benchmark index.
India's benchmark 10-year government bond yield surged today, as the rupee extended recent losses. The benchmark 10-year bond yield was trading at 9.4595%. The partially convertible rupee was trading at 64 per dollar, after hitting a record low of 64.12 per dollar earlier today.
Lower bond prices will result in diminution in value of bond holdings by banks. Bond yields and bond prices are inversely related.
YES Bank, IndusInd Bank, Axis Bank, Bank of India, Bank of Baroda, Punjab National Bank and Federal Bank are trading lower by 3-7% on the National Stock Exchange (NSE).
The NSE banking share index, Bank Nifty, was down 2.3% at 8,930 as compared to 1.7% fall in benchmark CNX Nifty at 0924 hours. The index hit low of 8,860 during intra-day trades, its lowest level since January 17, 2012.
Most of the frontline banking stocks has fallen more than 25% after the recent measures taken by the Reserve Bank of India (RBI) to tighten liquidity to stabilise the Indian rupee. The Bank Nifty has tanked 24.25% since July 15, as compared to nearly 12% fall in benchmark index.
India's benchmark 10-year government bond yield surged today, as the rupee extended recent losses. The benchmark 10-year bond yield was trading at 9.4595%. The partially convertible rupee was trading at 64 per dollar, after hitting a record low of 64.12 per dollar earlier today.
Lower bond prices will result in diminution in value of bond holdings by banks. Bond yields and bond prices are inversely related.