|Published : 28 Nov 2016, 15:54:41|
Indian shares edge higher
Indian shares edged up on Monday with lenders being the biggest drag after the central bank unexpectedly ordered banks to deposit their extra cash with it.
The Reserve Bank of India on Saturday asked banks to maintain a temporary incremental cash reserve ratio (CRR) of 100 per cent to absorb excess liquidity.
The Nifty PSU Bank Index fell as much as 4.43 per cent to its lowest since Nov. 9 as the CRR move is likely to deprive banks of earning interest on funds parked with the RBI.
The Nifty Bank index fell as much as 1.73 per cent.
Meanwhile, the benchmark 10-year bond yield rose as much as 15 basis points on the news.
The broader NSE Nifty was up 0.17 per cent at8,127.85 as of 0602 GMT with Bank of Baroda and ICICI Bank being the biggest losers.
The benchmark BSE Sensex was 0.14 per cent higher at 26,352.47 after falling as much as 0.51 per cent earlier in the session.
Lenders were among the biggest decliners with State Bank of India down 1.74 per cent, while Bank of Baroda fell 2.47 per cent, according to a news agency report.