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Indian shares fall as banking stocks drop over rate hike worries

Indian shares fall as banking stocks drop over rate hike worries

Indian shares fell Monday as concerns of a rate hike by the central bank later this week prompted selling in banking stocks.
The Bombay Stock Exchange's 30-share Sensex slipped 71 points, or 0.5 percent, to 14,212 points.
On the broader National Stock Exchange, the 50-company S&P CNX Nifty index fell 23 points, or 0.6 percent, to 4,124.
"The market is a bit cautious ahead of the RBI's policy review on fears of a rate hike due to high inflation," said Prakash Rajdev, chief dealer at brokerage Khandwala Securities.
Dealers expect a hike in key short-term interest rates by the Reserve Bank of India at its quarterly policy review Wednesday.
"There was also some weakness due to the holiday tomorrow as investors didn't want to take fresh positions," Rajdev said.
The stock markets were closed Friday for a national holiday, India's Republic day, and will be closed on Tuesday to mark the Muslim holy month of Muharram.
Banking shares ended lower on fears a rate hike could hurt credit growth in coming months.
State Bank of India lost 1.7 percent to close at 1,155 rupees. Punjab National bank dropped 2.2 percent to 505 rupees.


Updated : 2021-04-23 05:47 GMT+08:00