Shares of Axis Bank, Bank of Baroda and Punjab National Bank slipped after the stocks traded ex-dividend on Thursday.
Axis Bank had declared a dividend of Rs.16, Bank of Baroda Rs.17 rupees per share and Punjab National Bank Rs.22 per share for FY12.
Adding pressure to banking stocks was the outcome of the WPI inflation number for May which came in at 7.55% versus 7.23% in April. The number, slightly higher than April, was largely in line with expectations.
A higher reading has somewhat moderated expectations of the Reserve Bank of India cutting interest rates at its policy meet on June 18. It remains to be seen how the apex bank will tackle the need for liquidity with sticky inflation after data on Tuesday showed that industrial activity in the country had virtually stalled in the month of April.
Shares of Axis Bank were trading at Rs.1,019 down 2.6% over the previous close. It had touched a day’s high of Rs.1,037.80 and a day’s low of Rs.1,018.05. The total traded quantity of the shares stood at nearly 1.47 lakh shares on the BSE.
Shares of Bank of Baroda were trading at Rs.701.10 down 2.5% over the previous close. It had touched a day’s high of Rs.712.70 and a day’s low of Rs.700.35. The total traded quantity of the shares stood at nearly 63,000 shares on the BSE.
Shares of Punjab National Bank were trading at Rs.780 down 4.1% over the previous close. It had touched a day’s high of Rs.799.45 and a day’s low of Rs.778. The total traded quantity of the shares stood at nearly 51,000 shares on the BSE.