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D-Street Buzz: Bank Nifty ends 2% lower dragged by ICICI Bank; SBI hits 52-week low on BSE

Apart from ICICI Bank, other banking names including Kotak Mahindra Bank, IndusInd Bank, Punjab National Bank and RBL Bank ended 1-2 percent lower.

May 11, 2020 / 03:56 PM IST

The Indian stock market have closed in the red after profit booking dragged the market with Bank Nifty being the top sectoral losers down over 2 percent.

The top losers from the banking space included ICICI Bank which fell over 5 percent after the bank set aside Rs 2,725 crore as specific provisions towards the impact of the COVID-19 induced lockdown.

The other losers included Kotak Mahindra Bank, IndusInd Bank, Punjab National Bank and RBL Bank which ended 1-2 percent lower.

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ICICI Bank, HDFC Bank, Axis Bank and State Bank of India were among the most active stocks on NSE in terms of value. About 8,36,56,578 shares were traded in ICICI Bank while 1,42,72,411 share were traded in HDFC Bank and 5,45,61,254 shares were traded in State Bank of India.

Gautam Shah, Founder and Chief Strategist at Goldilocks Premium Research in an interview to CNBC-TV18 said, Bank Nifty plunged 45 percent against 37 percent fall seen in Nifty 50 during February 19-March 23 period when the maximum sell-off had taken place globally due to COVID-19 crisis and FII outflow. Shah feels many of the topline stocks in Bank Nifty are going to make lower lows.

Gautam Shah expects the Bank Nifty to fall towards 19,500 levels in the immediate. And if that gets violated then one could see the drop all the way to 18,300 and possibly even 17,000, he feels.

Share price of Au Small Finance Bank was down 5 percent lower circuit on BSE. Japanese research firm Nomura has downgraded the stock to neutral with a target price of Rs 500. It expects assets under management to moderate to 10 per cent and 22 per cent by FY21 and FY22, respectively.

Share price of State Bank of India hit 52-week low on BSE with the PSU major's Q4 profit down to Rs 83.5 crore from Rs 249 crore in the year-ago period, reported CNBC-TV18. The company's revenue for the quarter though was up 21 percent at Rs 2,510 crore from Rs 2,076 crore.

Also, three promoters of Ram Dev International, recently booked by the CBI for allegedly cheating a consortium of six banks to the tune of Rs 411 crore, have already fled the country before the State Bank of India reached the agency with the complaint, officials said on Saturday. According to the complaint filed by SBI, the account had become non-performing asset (NPA) on January 27, 2016.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Sandip Das
first published: May 11, 2020 03:56 pm

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