Rate sensitive shares slump ahead of RBI monetary policy

Bank shares were the top losers on fears that interest rates would continue to remain high.

Rate sensitive shares were among the top losers in early trades on Monday, amid weak global cues, on fears that interest rates would continue to remain high.

Last week, Reserve Bank of India Governor Raghuram Rajan commented that inflation is a destructive disease which is forcing the central bank to keep interest rates high.

Bank shares were among the top losers in early trades with ICICI Bank, HDFC Bank, SBI and Axis Bank down 2-3% each.

In the auto pack, Tata Motors, Mahindra & Mahindra, Maruti Suzuki, Bajaj Auto and Hero MotoCorp were down 1-3% each.

Engineering majors BHEL and Larsen & Toubro were both down 2% each.