In Indian markets, benchmark Sensex and Nifty 50 extended their slide for two straight day's after a blockbuster record high rally earlier this week. The equities looked overbought and hence markets have moved towards correction with banking stocks included too.
At Bank Nifty, all stocks listed are trading on a bearish note with heavyweights in a steep fall.
At around 2.39 PM, Bank Nifty was trading at 34,474.35 down by 529.15 points or 1.51%. The index has touched an intraday high and low of 34,882.40 and 34,463.15 respectively.
IndusInd Bank was the top underperformer tumbling by 3.2% followed by AU Small Finance Bank and RBL Bank sliding by 2.5% and 2.4% respectively.
Heavyweights SBI and ICICI Bank dived nearly 2% each. PNB and Axis Bank also plunged by 1.9% and 1.8%. Bandhan Bank and IDFC First Bank dived more than 1% each.
Index giant HDFC Bank plummeted 1.2% further dragging Bank Nifty.
Meanwhile, Kotak Bank and Federal Bank were marginally down.
US Fed has upped its projected timeline for raising interest rates by 2023 compared to earlier targeted 2024. However, the US Fed officials continued to say that inflation pressures are “transitory", even though they raised its headline inflation target to 3.4% which is a full percentage point higher from March estimates. The hiked expectations inflation would be the highest rise in about 13 years.