Bank stocks hit hard; tumble up to 10 pc

New Delhi, May 18 () Bank stocks were the worst hit among the BSE sectoral indices on Monday in a weak broader market where the BSE benchmark crashed 1,069 points.

IndusInd Bank was the top laggard in the Sensex pack, cracking 10 per cent, RBL Bank dropped 9.55 per cent, Federal Bank 9.47 per cent, City Union Bank 8.41 per cent, Axis Bank 7.55 per cent, ICICI Bank 7.44 per cent, SBI 6.61 per cent, HDFC Bank 5.83 per cent and Kotak Mahindra Bank 5.47 per cent.

The BSE bankex index fell 6.69 per cent. "With the stimulus package announced by the government, not seen as adequate considering the need of the hour and with infections continuing unabated, the markets ended down by around 3.4 per cent, in spite of positive global cues.

" Most measures may be seen as a long term positive and markets were more worried about the immediate impact of these measures. With concerns about rising NPAs, financials were most affected," said Vinod Nair, head of research at Geojit Financial Services.

The BSE benchmark closed 1,068.75 points, or 3.44 per cent lower at 30,028.98. Banks were the biggest contributors in the market crash on Monday.

"Banking stock witnessed selling pressure on the back of suspension of new bankruptcy cases for one year, declared in a stimulus package by the Finance Minister," said Vishal Wagh, Research Head, Bonanza Portfolio Ltd.

Seeking to provide relief for the coronavirus pandemic-hit economy, the government will provide various relaxations under the insolvency law, including suspending fresh proceedings for up to one year, exempting COVID-19-related debt and coming out with a special framework for MSMEs. SUM SHWSHW