Banks too fall prey to demonetisation; tumble drastically

The Banks which were having a jolly ride since the move of demonetisation, on November 2, however, have taken a backlash. With the Nifty breaching the 8000 levels and the Sensex breaching 26000 level the markets have narrowed to a significant extent. Amongst the Banking stocks State Bank of India was the biggest loser on the Sensex, down over 4 percent followed by HDFC Bank and ICICI Bank. However, with the markets plummeting, this phenomenon could be largely identified as profit booking.

The Bankex as at 11.27 am is down by 2.41 per cent. Amongst the index, Bank of Baroda has taken the largest toll and has fallen by 6.71 per cent, which is followed by Federal Bank which has declined by 5.63 per cent. However more than 5 lakh crores have already come under the banking system which is why the PSU Banks were having a free ride but the falling markets have impacted the banking stocks as well. On the other hand, rupee has extended losses and has hit 8 month low.