Banking sector sells off: ICICI, IndusInd, BOB, IDFC First slide up to 3%

On Tuesday, banking stocks faced significant pressure, with the Nifty Bank index falling nearly 1% in intra-day trading on the National Stock Exchange (NSE).

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This decline followed reports that the Securities and Exchange Board of India (Sebi) issued a “showcause notice” to Hindenburg Research on June 27, 2024. The US-based short seller has alleged that Sebi provided “surreptitious aid” to the Gautam Adaniled group and implicated a private bank in the ongoing Adani-Hindenburg saga.

Among the banking stocks, ICICI Bank, IndusInd Bank, IDFC First Bank, Bandhan Bank, and Federal Bank from the private sector, along with Bank of Baroda (BOB), Punjab National Bank (PNB), and State Bank of India (SBI) from the public sector, saw declines ranging from 1% to 3%.

At 2:27 PM, the Nifty PSU Bank index emerged as the top loser among sectoral indices, down 1.4%, while the Nifty Bank index decreased by 0.75% and the Nifty Private Bank index fell by 0.90%. In contrast, the broader Nifty 50 was relatively stable, down only 0.04% at 24,133.50.

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