Stock Market Witnesses a Slide

August 22, 2007	(Be the first to rate this story!)  Loading ...
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Real estate and banking stocks took a slide on Tuesday as the key stock indices fell to their lowest since 15 May 2007.  The BSE Bankex sees the biggest fall and was down 4.41% and wiped off the gains of the State Bank of India and ICICI bank.

The prominent builders including DLF Ltd, Indiabulls Real Estate, and Parsvnath Developers lost, taking the BSE Realty Index down by 4.59%.

Industry watchers blame the subprime turmoil in the US as the major factor responsible for such a sharp fall in the banking stocks.

Though, the US subprime concerns have no direct impact on the Indian banking stocks, but the country has brought the increasing credit growth in India under the lens.

With increasing credit growth in India and soaring interest rates on home loans, no bank wants to take risk as the scenario may push the number of home loan defaulters, says Ajit Dange, senior banking analyst Pink Research.

Union Bank was down 7.31% at Rs 123, Kotak Bank lost 6.87% at Rs 639.30, and federal Bank declined by 6.01% at Rs 304.00. This makes them the top loser among the banking sector stocks.

The State Bank of India lost by 5.59% to close at Rs 1,463.75 whereas ICICI bank lost by 4.78% to close at Rs 830.30.

News Published Under:   Banking and Finance |

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