| 12 April 2024, Friday |

Private banks weigh on Indian shares as RBL tanks 20%

Private sector lenders dragged on Indian markets on Monday after RBL Bank’s senior head went on medical vacation and the central firm named an executive to the bank’s board.

By 0514 GMT, the NSE Nifty 50 index (.NSEI) was nearly steady at 17,014 and the benchmark S&P BSE Sensex (.BSESN) was up 0.12 percent at 57,191.72. Earlier in the day, they dipped about 1% on fears about an increase in Omicron variant cases throughout the world.

RBL Bank (RATB.NS) shares plunged more than 20% after the lender’s board agreed to Vishwavir Ahuja, managing director and chief executive officer, going on medical leave with immediate effect. more info

The Nifty bank index (.NSEBANK) and the private bank index (.NIFPVTBNK) were both down 0.4 percent and 0.94 percent, respectively.

“There was a sell-off in the entire banking area (as a result of RBL Bank), and some rationality is returning. Some tier-2 banks are usually problematic. It is preferable to stay with major banks “Saurabh Jain, assistant vice president of SMC Securities in New Delhi, confirmed this.

“Omicron cases and a sudden shift in the US Federal Reserve’s attitude on liquidity rollback are two key concerns for markets.”

Thousands of flights have been postponed or delayed in the United States over the last three days owing to COVID-19-related personnel shortages, and some cruise liners have had to cancel stops due to breakouts on-board.

Meanwhile, as Omicron infections spread across the nation, India will begin providing COVID-19 booster doses as a preventative measure to healthcare and frontline workers on January 10.

Adhesives Ltd shares surged 20.7 percent on their market debut, compared to the initial public offering price of 274 rupees.

  • Reuters