The Hindu : Business : Bank shares suffer setback

Online edition of India's National Newspaper
Tuesday, Jul 06, 2004

Business

Business

Bank shares suffer setback

MUMBAI, JULY 5. Banking shares suffered sharply on the Bombay Stock Exchange today due to heavy selling following the Reserve Bank of India proposal regarding the maximum holding by a group in a private bank which pulled down the Sensex by 26.81 points to close at 4843.77.

The volume of business was at a low ebb and the undertone was cautious ahead of the Union Budget. The RBI had proposed that maximum holding by an entity or a group in a private bank could not exceed ten per cent and those whose holdings are in excess would have to find buyers who are willing to put this kind of money as pure investment or the existing holder will have to offload in the secondary market, a broker said. As a result, operators offloaded bank stocks, partly dampening the market sentiment, he added.

The BSE-30 share sensitive index opened slightly lower at 4861.15 against last Friday's close of 4870.58 and moved between 4894.39 and 4831.85 before concluding at 4843.77.

Other weak spots such as BHEL, Grasim, HPCL, ONGC, RIL, Tata Motors, ACC, GACL, MUL and Wipro caused the Sensex to fall. On the contrary, select pharma and fertilizer counters were in keen demand and ended with smart gains on good buying support on expectation of getting some soaps in the forthcoming budget. — PTI

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