By Simran Rede | 17 November, 2023

The Bank Nifty fell 1.31% after RBI increased capital requirements for unsecured loans, pulling down India’s benchmark equity indices. 

The Sensex closed at 65,794.73, down 0.28%, and the Nifty index closed at 19,731 down by 0.17%. 

IDFC First Bank, Axis Bank, and State Bank of India were among the top losers in the banking sector. The decline in banking stocks was attributed to concerns over rising interest rates and weak capital positions.

“RBI has increased risk weights and the capital position is pretty weak and that is the reason the banking sector is falling,” said Suresh Ganapathy, Financial Research Head at Macquarie Capital Securities. “So clearly the market is worried that there is a capital raising in the offing.” 

SBI Cards and Payments Services and Cholamandalam Investment and Finance were the top losers of the day in the market. Nykaa, SBI Life Insurance, and HDFC Asset Management Company were the top gainers of the day in the market. BirlaSoft and KPIT Tech touched a 52-week high in the Nifty Smallcap 100 index.