Banking stocks were on shaky ground on June 4 as investors rushed to book profits after yesterday’s record high moves. Shares of Bank of Baroda, PNB, SBI, Bandhan Bank, Axis Bank, and IndusInd Bank slipped up to 9 percent, compared to a 5 percent decline in the Bank Nifty index.
The overall market sentiment also deteriorated after the NDA-led coalition secured fewer seats than exit polls predicted, while the opposition I.N.D.I.A coalition exceeded expectations.
However, analysts believe that positive sentiment will revive after the market undergoes consolidation. “The current break from the bull run will help the market recognize an upward direction from here on. We don’t expect any major negativity to persist in the market for a very long time,” said A Balasubramanian, MD & CEO of Aditya Birla Sun Life AMC.
SBI experienced its biggest single-day fall since October 2008. As of 11:30 am, SBI shares fell 11.88% to ₹798.10 on NSE.
Experts expect Bank Nifty to regain strength and achieve the 51,000 mark, followed by 52,600 and 53,500. “The bias for the Bank Nifty index has turned strong and is expected to rise further, with 49,600 acting as a crucial support zone.”
