Sensex, Nifty fall; banks hit by deposit worries
Pratip Chaudhuri, chairman of the State Bank of India, said reducing the cash reserve ratio (CRR)—the amount of deposits that banks must keep with RBI—to 4% will free up about Rs 7,500 crore.
The BSE Sensex provisionally posted its biggest daily fall in two weeks on Monday as banks were hit by fears about slowing deposit growth, while capital good stocks like Larsen & Toubro fell on fears industrial output data due this week would weaken.
Traders, returning after domestic markets were closed on Thursday and Friday, also cited caution ahead of other key events this week, including Infosys' earnings on Friday.
State bank of India provisionally closed 3.2 per cent lower.
L&T provisionally closed 3.61 per cent down while BHEL fell 4.42 per cent.
The country's main 30-share BSE index provisionally closed down 1.51 per cent at 17,221.14 points and the 50-share NSE index 1.66 per cent at 5234.40.
Those falls, if held, would make them the biggest falls since March 26 for both indexes.
Copyright @ Thomson Reuters 2012