Bank of India, Bank of Baroda, Industrial Credit and Investment Corporation of India (ICICI) and ICICI Bank witnessed new lows during the day. BoB, which announced a 66 per cent rise in its net profit for 1997-98 only last week, saw its scrip touch a low of Rs 62 before it recovered to finally close at Rs 68.50.

"Bank stocks have taken a beating mainly on account of the Moody's downgrade on Friday," said a broker. Moody's, apart from downgrading India's sovereign rating by two notches, has also downgraded eight commercial banks, whose foreign currency bank deposits and debt obligations have been rated at the country ceiling.

Moody's has said that the rating actions do not affect the short-term foreign currency deposit ratings nor the bank financial strength ratings. The credit rating agency has, however,said that its ratings for local currency deposits of State Bank of India have been lowered.

SBI's long-term foreign currency deposits rating has been lowered to Ba3 from Ba1. The bank's short-term foreign currency deposit rating has been rated at Not Prime. The SBI counter witnessed heavy trades during the day with total turnover touching Rs 47.36 crore on the BSE. While the financial strength of SBI has been confirmed at D+ by Moody's, the financial strength of all the other banks other than Central Bank of India has been put at D. Central Bank's financial strength has been confirmed at E.

Other banks that have been downgraded by Moody's include BoB, BoI, Canara Bank, Oriental Bank, Punjab National Bank and Central Bank of India.

However, SBI scrip, though it witnessed an intra-day low of Rs 192, gained during the day to finally close at Rs 199. While ICICI touched a new low of Rs 63.20 before closing at Rs 66.90, ICICI Bank touched a new low of Rs 32.50. The scrip gained marginally to finally closeat Rs 33.25. The Bank of India scrip also touched a new low during the day at Rs 31 before closing at Rs 33.80. Global Trust Bank gained to close at Rs 38.85, Corporation Bank, a market favourite, closed lower at Rs 98.40 against its previous close of Rs 100.50.