NEW DELHI: Bank shares were hit hard in Monday's trade, plunging up to 28%, as the equity market suffered its worst ever singleday fall. Investors fretted over the impact of the lockdown in different parts of the country amid rising number of coronavirus cases and their fallout on the country's economic activities.
The 30-share Sensex tumbled 3,934.72 points or 13.15% to close at 25,981.24, the worst ever decline in one day.
In the first hour of trade on Monday, the benchmark indices cracked over 10%, triggering a 45-minute trading freeze. From the bank index, Axis Bank was hit hard the most, tanking 28%.
Likewise, Federal Bank plummeted 24.03%, IndusInd Bank (23.50%), City Union Bank (19.99%), ICICI Bank (17.88%) and RBL Bank (17.67%). SBI shed 13.38% while HDFC Bank and Kotak Mahindra Bank dropped 12.68% and 11.66%, respectively.
Tracking losses in these companies, BSE Bank dropped 16.81%. Another index which received severe drubbing was BSE Finance-- crashed 16.06%. From the finance index, Mahindra & Mahindra Financial Services cracked 28.91% and Max Financial Services declined 26.48%.
Bajaj Finserv settled 26.44% down while Equitas Holdings fell 25.29%, Bandhan Bank (24.68%) and Shriram Transport Finance Company (18.90%).
"Post a sharp rally last Friday, Indian equity markets again witnessed bloodbath today, hitting a lower circuit in the first hour of the trade. The downtrend continued even after the trading was resumed. Increase in domestic shutdowns to contain the virus also weighed on the sentiment.
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