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India's financial shares fall after RBI's raises two short term rates

Source : REUTERS
Last Updated: Tue, Jul 16, 2013 04:00 hrs

MUMBAI, July 16 (Reuters) - Shares in India's financial firms such as IDFC Ltd fell in pre-open trading after the Reserve Bank of India announced measures late on Monday to curb the rupee's decline by tightening liquidity and making it costlier for banks to access funds from the central bank.

The RBI decision to raise the Marginal Standing Facility (MSF) rate and Bank Rate each by 200 basis points to 10.25 percent is seen tightening liquidity and hurting the funding cost of Indian lenders.

IDFC Ltd fell 4.6 percent in pre-open trading while Housing Development Finance Corp Ltd lost 2 percent. (Reporting by Abhishek Vishnoi; Editing by Prateek Chatterjee)



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