Financial stocks plunged on June 13 tracking declines in Asian markets, after Israel launched military strikes on Iran, escalating tensions in the oil-rich Middle East.
At 9:45 am on June 13, Bank Nifty was trading nearly 700 pts lower at 55,409. Kotak Mahindra Bank led the losses among the Bank Nifty constituents by falling 2.1% to trade at Rs 2,081 apiece.
Meanwhile, shares of HDFC Bank and AU Small Finance Bank were trading 1.25% and 2.11% lower, respectively.
The PSU Bank index also fell 1.2% to trade at 6,940. Shares of Indian Overseas Bank and UCO Bank led the losses by falling 2.59% and 2.36%, respectively. Punjab & Sind Bank and Union Bank of India shares also fell 2%.
Israel carried out what it called as "preemptive strikes" against Iran. Israeli Prime Minister Benjamin Netanyahu said the airstrikes were aimed at key parts of Iran’s nuclear and military program. "We struck at the heart of Iran's nuclear enrichment program, Iran's nuclear weaponization program, Iran's main enrichment facilities, leading nuclear scientists, and ballistic missile programs," Netanyahu said.
PM Netanyahu said in a video message: "Moments ago, Israel launched Operation Rising Lion, a targeted military operation to roll back the Iranian threat to Israel's very survival."
Multiple explosions were heard across Tehran, CNN reported citing Iran’s state news agency IRNA. Iran has meanwhile vowed to fight back, raising concerns of further escalations and spooking investors.
Also read: Our LIVE blog on Israel-Iran war
Until June 11, financial stocks were on the upmove post-Reserve Bank of India announcing reduction in cash reserve ratio by 100 bps and reduced the key repo rate by 50 bps, thus infusing liquidity into the system.
"The charts of Bank Nifty indicate that it may get support at 55,500 followed by 55,100 and 54,800. If the index advances further, 56,000 would be the initial key resistance, followed by 56,200 and 56,400," said Hardik Matalia, derivative analyst, Choice Broking.
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