Financial stocks fall as RBI raises two short-term rates
MUMBAI (Reuters) - Shares in financial firms such as IDFC Ltd fell after the Reserve Bank of India announced measures late on Monday to curb the rupee's decline by tightening liquidity and making it costlier for banks to access funds from the central bank.
The RBI decision to raise the Marginal Standing Facility (MSF) rate and Bank Rate each by 200 basis points to 10.25 percent is seen tightening liquidity and hurting the funding cost of lenders.
IDFC (IDFC.NS) fell 6.5 percent while Housing Development Finance Corp (HDFC.NS) lost 3.14 percent.
(Reporting by Abhishek Vishnoi; Editing by Prateek Chatterjee)
- Tweet this
- Share this
- Digg this
- Facebook Q1 revenue grows 72 percent on rising mobile ads
- UPDATE 3-Boy and girl on Korean ferry tied life jackets together before they drowned
- Boy and girl on Korean ferry tied life jackets together before they drowned
- Kashmiris wary as Modi challenges for power
- Preview - Liverpool seek to land knockout blow on Chelsea
The opposition Bharatiya Janata Party was set to make gains in Tamil Nadu and West Bengal that began voting on Thursday in the sixth phase of a mammoth general election that could help it build a stable majority in parliament. Read | Full Coverage: Election 2014
India may cede top rice exporter spot under Southeast Asian price onslaught. Full Article