Reuters Market Eye - Barclays downgrades select state-owned banks and finance companies, citing a slowing economy and unpredictable monetary policy responses.
The brokerage expects asset quality to remain problematic as the stress in economy is seen extending beyond the SME and mid-corporate segments to the large corporate segment.
"We are negative on PSU stocks on concerns that they not only have stressed exposures, but are likely to be constrained in taking risk mitigation actions," Barclays said in a report on Thursday.
The research house downgrades Bank of Baroda Ltd
Bank of Baroda gains 3 percent, while Bank of India is up 4 percent and Punjab National Bank rises 2 percent.
Among non-banking finance companies, LIC Housing Finance Ltd
