Analysts at Morgan Stanley have turned underweight on private sector lenders Yes Bank and RBL Bank amid rising interest rates and NBFC turmoil. YES Bank, already seeing significant turmoil in share price, fell again today on the news. RBL Bank (which is in ten stock screeners today) also fell sharply today on high volumes on the news. 

Morgan Stanley has assigned equal-weight rating for AU Small Finance Bank, a downgrade from its previous rating, and the stock fell in share price today. Morgan Stanley said that rising interest rates, as well as the NBFC upheaval are likely to support bigger and more established banks including ICICI Bank, HDFC Bank and Axis. These banks saw share prices rise on the analysis.