Amid the highly volatile market with worst fall in the last 4 years since March 2020, banking stocks were on a shaky ground as investors rushed to book profits.
The largest Public Sector Bank, State Bank of India (SBI) logged over 19% intraday loss on Tuesday.
SBI share price opened with a significant downside gap and touched an intraday low of Rs 731.95 apiece on NSE. While touching this intraday low, SBI shares missed touching the lower circuit.
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However, many experts believe that the SBI share is a portfolio stock, and the current fall presents a golden opportunity for long-term investors.
Other key banks like Central Bank and IOB also dropped by nearly 13.7% and 11.8% respectively.
Nifty Bank hit its lowest point of the day, 46,077.85. Heavyweights HDFC Bank and ICICI Bank were among the top three laggards.
HDFC Bank dropped 7.5% to Rs 1,454, the day’s low. While with a 9.2% decline, ICICI Bank, the second-largest private lender by market capitalization, reached the day’s low of Rs 1,053.55.
Bank of Baroda (BoB) and Punjab National Bank (PNB), both collapsed by 20%.
Bandhan Bank, IndusInd Bank, Federal Bank, IDFC First Bank, Axis Bank, AU Small Finance Bank, and Kotak Mahindra Bank also declined in the range from 4 to 12%.
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Notably on Monday, the State Bank of India emerged as the seventh Indian listed company to have surpassed Rs 8 lakh crore market capitalisation.
On Tuesday, the market volatility surged with the India VIX jumping nearly 40% to above 29. This is the biggest jump in the volatility index in at least 9 years.
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