Bank Nifty nosedives near 500 pts; Kotak, HDFC, ICICI, Axis Bank weigh down

6 Jan 2022 , 10:45 AM

Bank Nifty was broadly under pressure on Thursday with majority stocks trading on a bearish note scrapping previous record highs. However, heavyweight banks recorded a sharp free fall to contribute to drag the broader markets.

Indian markets witnessed broad-based selloff correcting from four-days of winning spree tracking weak global cues. Also, due to rapid increase of Omicron variant, the global economic outlook remains shrouded in uncertainty with headwinds from multiple fronts.

Also, the sharp cut in the US, Q3 results, budget expectations, inflation and macro data are likely to influence the market in the coming days which are the key challenges for financials and banking sector for year 2022.

At around 10:45 AM, Bank Nifty was trading at 37,204.05 down by 491.85 points or 1.30%. The index has tumbles to intraday low at 37,058.45 while Sensex again scraps 60K and Nifty struggles to hold 17,700.

On the index, 9 scrips declined and only 3 scrips advanced to support the bearish trend in the sector.

Kotak Bank was the top bear plunging near 2% followed by HDFC diving 1.63%. ICICI Bank, Bandhan Bank, IDFC First Bank were also down over 1% to drag the sector most.

Axis Bank and State Bank of India slipped by 0.70% each while IndusInd Bank and PNB joined the market bears to trade 0.5% lower each.

Furthermore on the upside, Federal Bank gained 0.22% while AU Bank also contributed the sector with marginal gains.

However, RBL Bank emerged as top gainer by surging over 1.5% at Rs134.80 per piece after the bank said that its gross advances grew 5% to Rs59,941cr by December end.