It was extremely weak days for the markets wherein Sensex and Nifty opened with huge gap down on the back of weak cues from global markets. Finally the markets witnessed the second ever biggest fall today. Banking stocks were among the worst hit counters today and the BSE bankex closed down nearly 7% at 9434.44.

There has been some uncertainty about the performance of banking stocks since finance minister Mr. P. Chidambaram announced waiving off Rs 60,000 crore of loans advanced to farmers by the nationalized banks. State owned banks had tanked on the budget day also. However, it is being talked about that the union government will reimburse this money to the banks to in the form of bonds over a period of three years to. 

All the stocks in the bankex ended in deep red today led by Punjab National Bank, Kotak Bank and Bank of India which slipped over 8.5% each. Some of the other leading losers among the banking space were Axis Bank, Bank of Baroda Canara Bank, Union Bank and Yes Bank which ended with deep cut of over 7% each.

Federal Bank and Karnataka Bank were few names which also ended in red but were relatively out performer.