Banking shares fall less aggressive RBI seen

MARKET-EYE-BANKS-SHARES-FALL-LESS-AGGRESSIVE:Banking shares fall less aggressive RBI seen

 

Reuters Market Eye - Banking shares fall after India's wholesale price inflation accelerates to 7.55 percent in May from a year earlier, though core WPI is estimated at around 4.85 percent.

WPI data cements expectations for a 25 bps cut from RBI on June 18, but raises doubts about more aggressive action, such as a 50 bps cut in the repo rate, or cuts in both interest rate and the cash reserve ratio. Banking shares, as measured by the NSE banking index, fall 1.8 percent; had gained 7.3 percent so far this month as of Wednesday's close.

ICICI Bank loses 2.9 percent, while SBI Bank falls 2 percent.