Nifty Bank experienced a sharp decline of nearly 5,000 points or 10% on Tuesday, as market sentiment soured following the INDIA alliance’s stronger-than-expected performance against the BJP-led NDA in early polls. This unexpected political development spooked investors, causing a significant sell-off in the markets.
The index hit a low of 46,077.85, with all 12 of its constituent stocks in the red. Leading the downturn were HDFC Bank and ICICI Bank, which were among the biggest decliners, just behind Reliance Industries. The index eventually closed down 8% at 46,928.60.
State Bank of India also played a significant role in the market’s decline, dropping a steep 19% to an intraday low of Rs 732. After reaching an all-time high, SBI’s market capitalization fell back to just over Rs 7 lakh crore, marking a notable retreat from its peak.
Other banks like Punjab National Bank and Bank of Baroda saw their shares plummet by 20%. Additionally, stocks like Bandhan Bank, IndusInd Bank, and others recorded losses ranging from 12% to 4%, further dragging down the Nifty, which closed down 6% at 21,884.50.
