Banking and Financial Stocks Drag Indices Down Due to Moratorium

The Indian benchmark indices ended the week in the red on the back of the Reserve Bank of India (RBI) cutting interest rate by 40 basis points. Also, the RBI announced the extension of the moratorium on the repayments of loans and credit cards by three months. The financial stocks have reacted negatively to the latest development.

The financial stocks witnessed a selling trend today. The NSE Nifty Bank index tanked more than 2.5% to close the day at 17,279 points, and the NSE Nifty Private Bank index dropped nearly 3% to end the day at 9,421.55 points. The NSE Nifty 50 wrapped up Friday at 9,039.25 points, losing 0.74% or 67 points. 

The S&P BSE Sensex plummeted 0.84% or 260 points. It closed the day at 30,672.59 points. The fall in the index was led by the stocks or Axis Bank, ICICI Bank, and HDFC Bank. The Sensex index was kept afloat by the stocks of the IT giants TCS, Infosys and other majors. The markets are set to open only on Tuesday as Monday is a holiday marked by Eid-al-Fitr. 

Also Read: Rallying of Financial Stocks Make Sensex Close Higher

On the Bombay Stock Exchange, the stocks of SBI Cards recorded its fresh low at Rs 495; the losses are attributed to the announcement of the extension of EMI moratorium until the 31st of August. The stock erased some of its losses and closed Friday 5.96% down at Rs 510 a share. 

Coming to the broader indices, the S&P BSE SmallCap index settled 0.23% down at 10,524.23 points. The S&P BSE MidCap index collapsed at 0.83%, and it ended the day at 11,270 levels. 

The stock markets around the globe were down as the Chinese Government came up with a new security law in Hong Kong to prevent unrests that such as the one that broke out during the last year’s pro-democracy protest. 

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