SBI, Axis Bank In Red; Major Banking Shares See Marginal Decline After RBI Retains Repo Rates At 6.50%

The Reserve Bank of India announced on August 8 that the central bank will retain the repo rate at 6.50 per cent.

This all-important announcement came after its bimonthly Monetary Policy Committee or MPC, held between August 6 and August 8.

As a result of this announcement, the share markets have reacted to the message in a sombre tone.

Nifty Bank and the majority of its constituents were trading in red, with some marginal declines in their overall numbers.

The country's largest lender, SBI, saw its shares waver a little as it continued to trade in red. The share prices slumped by 0.34 per cent or Rs 2.75, dropping to Rs 805.90 per share.

Axis Bank, a major private lender, also saw its shares decline by 0.69 per cent or Rs 7.90, diminishing to Rs 1,128.90 per share, in the trade after the announcement.  

Another major PSB, the Punjab National Bank, also saw its equity decline in value to Rs 115.04 per share, after a slump of 0.77 per cent or Rs 0.89.

One of the largest private lenders in the country, ICICI Bank, appears to be the biggest loser in the lot, as the bank shares declined by 0.92 per cent or Rs 10.75, dropping to Rs 1,161.70.

It was not all red at Dalal Street, as some banking shares progressed into positive territory as well.

HDFC Bank, one of the biggest private banks in the country, after a period of minor decline, jumped back to green. In fact, HDFC Bank shares zoomed to Rs 1,639.30 after jumping by 0.97 per cent or Rs 15.80. 

South India-based Federal Bank also saw a rise of close to 1 per cent. The bank's shares rose by 0.95 per cent or Rs 1.83, jumping to Rs 194.53.

AU Bank and IDFC First also saw their shares rise amid the largest downturn. The marquee index, however, saw a marginal decline of 0.014 per cent or 7.15 points, still remaining above the 50,000 mark.

The retention of interest rates also came along with the RBI's caveat on food inflation, as the governor said in his speech that food inflation is something that cannot be ignored.