Weakness in banking stocks dragged down key benchmark indices on Wednesday as the sector remained under pressure following the collapse of two American banks in the last week and new names cropping up by the day.
While the S&P BSE Sensex fell 344.29 points or 0,59%, to 57,555.90 points, the BSE Bankex slumped 382.47 points, or 0.86%, to 44,223.85 points.
Similarly, the NSE Bank index fell 359.90 points, or 0.91%, to 39,051.50 points while the broader NSE Nifty-50 index closed 71.15 points or 0.42% down at 16,972.15. The impact is more in NSE because 42% of Nifty-50 is its bank index.
“More names are emerging. On Wednesday the name of Credit Suisse Bank emerged indicating trouble in Europe. Today no one knows which bank’s financial health is sound or not. That has created uncertainty in the global markets and it spilled over to India,” said Arun Kejriwal, founder at Kejriwal Research & Investment Services Pvt Ltd.
On the BSE, IndusInd Bank fell 1.85%, HDFC Bank by 1.54% and State Bank by 1.49%.
