Worst not over for bank stocks; sit on the sidelines for now, say analysts

Analysts suggest seizing any rebound as an exit opportunity in current market scenario

Investors should view any bounce-back in bank stocks as an opportunity to exit the pack, analysts suggested on Wednesday, as the worst may not be over yet.

The recent quarterly results of HDFC Bank and Axis Bank disappointed the Street, triggering a marketwide selloff by foreign institutional investors, especially in banking counters.

While HDFC Bank, which was the anchor for the market correction during the past week, ended 2 per cent higher amid short covering on Wednesday, Axis Bank’s shares settled 3 per cent lower.

They cracked 6 per cent to a low of Rs 1,020.85, marking their sharpest intraday