Bank Nifty at a low; Axis Bank losses the most

The Bank Nifty representing the 12 most capitalised and liquid stocks from the banking sector on the National Stock Exchange, has plunged to a 0.79 per cent low at 20,721.05, exhibiting the dampened spirit of the banking sector. Just above 2.30 mark, the pressurised Bank Nifty, has set foot into the overbought zone.

A drop in the credit demand by the small and medium enterprises contriving an expectation of a fall in the credit growth owing to demonetisation, has been held accountable for most of the slowdown in the sector. The cash withdrawal limits and deffering any additional growth in the personal growth sector, also proved to be a backlash.

Moreover, RBI's unchanged monetary policy rates, has also resulted in a negative impact on the banking stocks. While the allegations and investigations on the various top bank employees by the police and the tax authorities, coupled with the foreseen bank strike, in the wake of employee grievances on corruption and outsourcing issues, has also set out investor sentiments to a further low.

The biggest loser being the Axis Bank, which is down by 2.77 per cent, as an aftermath of grievous offences and suspension of several employees. Other banks including the Bank of India, Bank of Baroda, ICICI Bank and HDFC Bank are also amongst the ones facing the brunt.