Banking shares fall after higher-than-expected inflation data dents hopes for a rate cut.
The NSE's bank index falls 1.6 per cent; ICICI Bank losing 0.9 per cent, HDFC Bank down 1.6 per cent, and Axis Bank down 1.6 per cent.
Also hitting sentiment was Moody's downgrade of the financial strength ratings (BFSR) of the above three banks.
However traders say banks could be supported by expectations the RBI will inject liquidity via open market operations or a cut in the cash reserve ratio.
Copyright Thomson Reuters 2012
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