Banks worst hit global melt down; bankex down over 8%

Markets plundered today on back of weak global cues. The markets were down on the back of huge delivery base selling and rising concerns of crude.

Both Sensex and Nifty were down with deep cut more than 4.5%. Bankex was one sector, which was under tremendous pressure and was down over 8% in today’s trade falling more than 500 points to 5817.

The carnage in the Banking sector was lead by all the front-runner stocks. HDFC Bank was down more than 11.5% followed by ICICI Bank down 9%. SBI, Kotak Bank, Axis Bank were down over 7%.

Other Banking stocks like Yes Bank, IOB, OBC, Canara Bank were down and having an average cut of about 5%. PNB was trying to show some bit of resistance but closed down over 2%.

Freddie Mac and Fannie Mae the two financial institution with mandate to maintain a market for mortgages - buying loans from banks.

These two banks are feeling heat in the global turbulance and the stocks are down almost 90% since August 2007. The American government is tryng to bail it out. Similarly to the story for Bear Stearns.

They own or guarantee USD 5 trillion worth of mortgages­ - nearly half of all the country's outstanding home loan debt - and they're crashing. The Federal Bank commenting on this says that it wont let these institutions fail.

- by Aniket Vakharia