www.rupeedesk.in
The banking sector stocks are likely to continue their losing streak for the third week
weighed down by central bank's probe into money laundering allegations by some private
bank employees, and absence of enough positive cues from the central bank policy
review. This week doesn't look anything better for the Bank Nifty. With ongoing political
uncertainty risk aversion could be more pronounced. RBI has initiated a probe into the
alleged breach of norms by the 3 banks. Some recovery in the stocks of these private
banks is seen next week, after RBI Deputy Governor downplayed. The allegations neither
of money laundering neither are nor proved nor of the magnitude of a scam. There is not
a single transaction which has taken place. There is no scam (that) has happened.
Absolutely not (rampant). You show me a transaction which has taken place. Know your
customer or KYC norm violation would happen in any system. These were all
transactional issues, and had nothing to do with money laundering. They should not
unnecessarily downgrade their selves and explained how some irregularities in KYC
shouldn't be read as something as heinous as money laundering.
The Reserve Bank of India's monetary policy review on Tuesday cut the repo rate by 25
basis points but it issues an extremely hawkish guideline that weighed on the stock
market as a whole and banking stocks in specific. An unfolding political crisis on the
wake of support withdrawal by the ruling government's ally Dravida Munnetra
Kazhagam, also triggered risk aversion among investors this week and may continue to
weigh on the banking stocks in the week ahead.
