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Bank Nifty Drops 500 Points As RBI Liquidity Moves And Bond Yields Spike
M
Moneycontrol•12-10-2026, 11:19
Bank Nifty Drops 500 Points As RBI Liquidity Moves And Bond Yields Spike
- •Bank Nifty declined nearly 500 points to 54,768.60 in morning trade, with all 14 constituents trading in the red.
- •The Reserve Bank of India announced plans to sell Rs 25,000 crore of government bonds and raised the minimum daily CRR maintenance requirement to 99 percent.
- •The benchmark 10-year government bond yield surged to a three-year high of 7.3707 percent amid tightening liquidity.
- •Major banking stocks including SBI, ICICI Bank, Axis Bank, and Punjab National Bank led the market losses.
Key Questions Answered
The Bank Nifty fell nearly 500 points due to the Reserve Bank of India's latest liquidity-tightening measures and a sharp rise in government bond yields, which weighed on market sentiment toward banking stocks.
The RBI announced plans to sell Rs 25,000 crore worth of government bonds on Tuesday to absorb liquidity and raised the minimum daily cash reserve ratio (CRR) maintenance requirement for banks from 90 percent to 99 percent, effective October 16.
Indian government bonds fell sharply, pushing the benchmark 10-year yield to a three-year high of 7.3707 percent from 7.2994 percent, marking its eighth consecutive week of gains.
