The Axis Bank stock fell in trade today after Reserve Bank of India (RBI) dropped the third-largest private sector lender from a list of banks it has cleared to import gold and silver in the current financial year that began April 1. The stock which rose to 505 level in early morning trade hit a low of 493 .10 intra day when the news came in.
At 10:53 am, the stock was trading 0.43 percent or 2.15 points lower at 496.05 on BSE. Its market market capitalisation stood at Rs 1,27,301 crore. The stock opened at 493.10 level today.
It was unclear why Axis, one of country's leading importers of bullion, did not feature in the list that was released late on Monday.
Axis Bank and the Reserve Bank of India were not immediately reachable for comment, according to Reuters.
Bank of Baroda, HDFC Bank and Bank of Nova Scotia were among the 16 banks allowed to import bullion.
Two other small banks Karur Vyasa and South Indian Bank, were also dropped from the RBI list.
Meanwhile, banking sector stocks were top gainers in an otherwise falling market after RBI allowed lenders to spread provisions for bond losses in the third and fourth quarters of FY18 over the next four quarters.
The BSE bankex was up 114 points to 27,212 level. Bank Nifty too was trading 43 points higher at 24,372 level.
The Sensex was trading 75 points or 0.23% lower at 33,179 level. The Nifty was down 26 points to 10,184 level.
On Monday, Axis Bank fell 2.2 per cent to Rs 498.20 amid reports the RBI has asked the company's board to re-consider the decision to re-appoint Shikha Sharma as its MD and CEO for a fourth term.
The company's market valuation declined by Rs 2,762.83 crore to Rs 1,27,853.17 crore on the BSE.
The stock dropped 2.20 per cent to end at Rs 498.20 apiece on the BSE. During the day, it lost 3.31 per cent to Rs 492.50 per share.