Market Movers: Banks slide but hotels surge on RBI measures

MUMBAI: While it has been tough being a hotel stock this year given the lockdowns and uncertainties that engulf the sector, today was a good day for the space. The Reserve Bank of India’s decision to open a special liquidity window for the other sector and other contact-intensive businesses eased their shareholders’ concerns over their financial health.

Asian Hotels, Royal Orchid, Taj GVK Hotels and shares rallied 3-19 per cent as if the entire country was on the verge of packing their suitcases for the long overdue vacation. Fingers crossed!

Sentiment hurt While the RBI was looking out for borrowers that have been hit hard by the second wave of the pandemic, its gesture, unintentionally, hurt bank stocks. The central bank allowed borrowers with up to Rs 50 crore in loans to restructure their loans with banks if they had not done so previously.

However, the raising of the limit just a month after the RBI introduced the new window for recast led to concerns that the central bank knew more about the stress in the system than banks were letting out to investors in the post-March quarter earnings calls.

Spandana Spurty!
While most investors were bothered about what the RBI had to say, Spandana Sphoorty Financial was soaring 8 per cent. The spurt in the non-bank lender came after a media report said that private sector lender Axis Bank is on the prowl to acquire the NBFC, which came as a positive surprise to Spandana Sphoorty investors.

PSU twins going private
While most banks were under pressure today, you know after what the RBI said, Bank of Maharashtra and ’s investors were daydreaming about life under a private entity. A media report earlier in the day said the government’s advisers have named the two banks as the foremost candidates for privatization this financial year. The development helped the shares of the two banks end 10-13 per cent higher.