Market Now: Banking stocks extend losses for 2nd day

NEW DELHI: After hitting record high of 26,921.97 on June 19, BSE Bankex index continued to fall for the second straight day on Wednesday following selling in select public and private sector lenders.

Shares of IndusInd Bank (down 1.10 per cent ), Federal Bank (down 0.59 per cent ), Axis Bank (down 0.31 per cent ) and ICICI Bank (down 0.31 per cent ) were among the biggest losers in the morning trade on Wednesday. The BSE Bankex was down 0.20 per cent at 26,802 around 11 am (IST).

However, shares of Punjab National Bank (up 1.39 per cent), Bank of Baroda (up 1.11 per cent), State Bank of India (up 0.53 per cent) and Kotak Mahindra Bank (up 0.03 per cent) were trading in green around the same time.

Bank stocks have been showing the volatile trend in recent time amid the news of NPA and farm loan waiver by several state governments.

Banking sector has been grappling with the issue of non-performing assets (NPA) which is estimated to be of Rs 10 lakh crore.

Benchmark NSE Nifty50 index was down 36 points at 9,617, while BSE Sensex was 84 points down at 31,212 around the same time.

Among the 51 stocks in Nifty index, 9 were trading in green, while 42 were in red.

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Traders were seen piling up positions in office equipment, tyres, retail, leather, telecommunications, tobacco, shipping, beverages - alcoholic, rubber and power sectors.

However, selling were visible in glass, packaging, service, agriculture, gems and jewellery, aquaculture, textiles and finance sectors.