Bank Nifty at three month low, down 9% in six days

PNB, BoB,Indusind Bank, SBI, ICICI Bank, Axis Bank, BoI, Canara Bank & HDFC Bank are down by 2-3% on NSE.

Banking shares continue under pressure in six straight trading sessions with the National Stock Exchange (NSE) Bank Nifty hits its lowest level since October last year.

Punjab National Bank, Bank of Baroda and Indusind Bank have slipped by 3% each, while State Bank of India, ICICI Bank, Axis Bank, Bank of India, Canara Bank, Union Bank of India, Kotak Mahindra Bank and HDFC Bank are down by 2% each.

The NSE banking share index, Bank Nifty is down 2% or 210 points at 10,228, hits three month low following the US Federal Reserve announcing plans to scale back its bond purchases by another US$10 billion. The benchmark index CNX Nifty is down nearly 1% at 0957 hours.

According to analyst, the concern is particularly high for Emerging Market (EM) currencies, which, it is believed, will be particularly impacted by higher US rates. Among these, it is feared the ones with highest Current Account Deficits (CAD) will be most impacted by the sudden slowdown in capital flows.

Meanwhile, in past six trading session, Bank Nifty is down 9% or  979 points from 11,207 on January 22, compared to 4.5% fall in the benchmark index.

Bank of India, Canara Bank, IDBI Bank, Allahabad Bank, Oriental Bank of Commerce, Punjab National Bank, Yes Bank, Bank of Baroda and Syndicate Bank are down more than 10% each during the period.