Banking shares fall 6%

The banking stocks fell as much as 4 per cent on the Bombay Stock Exchange (BSE), in line with the benchmark index Sensex, which plummeted 5 per cent today, amid a meltdown in the global markets.

Shares of heavyweights like HDFC Bank fell as much as 6 per cent, while ICICI Bank dropped by about 3 per cent. With the drop in the share prices of heavyweights, the BSE Bankex, the banking index, dropped by 4 per cent.

The Bankex settled at 6,172 points, after touching the day’s low of 6,123.97 points.

Private sector lender HDFC Bank plunged 5.61 per cent to close at Rs 1,201.90. It had touched a low of Rs 1,192.50 and over 2.77 lakh shares changed hands on BSE.

 

While the largest private sector lender, ICICI Bank, settled down 2.78 per cent at Rs 490.45 on BSE. The scrip had touched an intraday low of Rs 475.65 and over 24.48 lakh shares changed hands on the bourse. Analysts believe that the domestic markets are suffering because of the meltdown in the global markets.

“There is a sort of panic selling happening in the market and the banking stocks are no exception to that. A kind of fear has gripped the stocks, which is leading to redemption in the stocks,” said Paras Bodhra, head (research), Asika Stock Brokers Research. Further, the country’s largest lender, State Bank of India, fell 3.20 per cent to settle at Rs 1,434. Bank of India fell about 5.38 per cent, IDBI Bank dropped 4.38.

SBI settled at Rs 1,434, down Rs 47.40, after touching the day’s low of Rs 1,421.10.