Sensex down 200 points; Yes Bank sinks 10%

The BSE Sensex fell over 1 per cent as the RBI's measures to curb the rupee's slide are seen hurting growth, tightening liquidity and lowering the likelihood of rate cuts in the medium term, dealers said.

The BSE Sensex traded down 1.02 per cent, while the Nifty declined 1.32 per cent as markets headed towards snapping their 3-day gaining streak.

Shares in India's financial firms fell. IDFC slumped 7.3 per cent, while Housing Development Finance Corp traded down 3.6 per cent.

Lenders that are dependent on short-term wholesale funding like Yes Bank will be most impacted by the central bank's measures to curb liquidity, analysts said.

Yes Bank slumped 9.6 per cent while IndusInd Bank sank 8.5 per cent.

Among banks, ICICI Bank fell 5.4 per cent while HDFC Bank traded down 2.1 per cent a day ahead of its earnings results for June-quarter.


(Copyright Thomson Reuters 2013)