The Nifty Bank index dropped over 1 percent (nearly 530 points) to stand at 48,452 on February 24. This comes as bank stocks including IndusInd Bank, HDFC Bank, ICICI Bank and others tumbled up to 2 percent.
The banking index has now extended losses for the third consecutive session. This comes amid sell-off from foreign portfolio investors, who have substantial exposure to the sector.
IndusInd Bank shares were the top loser on the Nifty Bank index, falling over 1.6 percent to trade at Rs 1,027 apiece. Heavyweight HDFC Bank also recorded strong losses, falling nearly 1.4 percent to trade at Rs 1,669 per share. ICICI Bank shares meanwhile dropped 1.29 percent to trade at Rs 1,217 apiece.
Bank of Baroda, IDFC First Bank, State Bank of India (SBI), Canara Bank, Punjab National Bank (PNB), Axis Bank and AU Small Finance Bank shares were trading in the red with minor losses.
Despite the market downturn, few bank stocks bucked the trend to trade in the green. Federal Bank shares rose over 1 percent to trade at Rs 182 apiece. Notably, Motilal Oswal has maintained its 'BUY' rating on the stock, with a target price of Rs 225 per share. This implies an upside potential of nearly 24 percent from the current trading level.
Kotak Mahindra Bank shares were trading with minor gains.
Notably, the ongoing market downturn comes amid a persistent selloff fueled by several factors. The concerns over US President Donald Trump's possible tariffs, persistent foreign institutional investor (FII) outflows, and weak global cues are some of them.
"The market is facing headwinds from relentless FII selling and global uncertainties over Trump tariffs. The sharp rise in Chinese stocks is another near-term challenge. In the US, long-term inflation expectations are rising, reducing the likelihood of an interest rate cut by the Federal Reserve," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
