Bank Nifty falls 435 pts amid HDFC Bank slide

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Mumbai | Published: June 5, 2018 2:50:20 AM

Market participants said the slide in HDFC Bank’s stock, concerns about the rate hike by RBI, and news reports of the merger of state-run banks led to the sell-off in banking stocks.

bank nifty, HDFC bank, hdfc bank share, nifty bank indexThe slide in HDFC Bank’s share price, fears of a rate hike and concerns about the merger of state-run banks pushed the Bank Nifty down by 435.25 points on Monday. (Reuters)

The slide in HDFC Bank’s share price, fears of a rate hike and concerns about the merger of state-run banks pushed the Bank Nifty down by 435.25 points on Monday. The Nifty Bank Index, a barometer for bank stocks, declined 1.63% to 26,257.55 on Monday.

Market participants said the slide in HDFC Bank’s stock, concerns about the rate hike by RBI, and news reports of the merger of state-run banks led to the sell-off in banking stocks. Shares of HDFC Bank fell on account of profit booking after the trading window for Foreign Institutional Investors (FIIs) closed on Friday. The stock of HDFC Bank rose by 4.4% on Thursday on expectations that FIIS were likely to buy more than $ 1 billion of the stock on Friday.

On Monday, share prices of HDFC Bank fell by 3.11% and ended the session at Rs 2,045. News reports of the merger of PSU Banks also contributed to the Bank Nifty’s slide. According to news reports, the government is considering the merger of at least four state-run banks including Bank of Baroda, IDBI Bank, Oriental Bank of Commerce and Central Bank of India.

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