Nifty Bank fell nearly 5,000 points or 10% on Tuesday as investors reacted to tight election poll results, which contradicted earlier predictions of a clear win for the BJP-led NDA alliance.
All 12 companies in the index were down, with Nifty Bank hitting a low of 46,077.85. HDFC Bank and ICICI Bank were among the top losers, along with Reliance Industries (RIL).
State Bank of India (SBI) saw a massive drop of 19%, hitting an intraday low of ₹732. This brought its market value down to just over ₹7 lakh crore from over ₹8 lakh crore at its peak.
“Bank Nifty dropped sharply and found support near its 200-day EMA at 46,200. With election uncertainty, we might see more selling if Bank Nifty falls below this level. Support is at 46,200 and resistance at 48,000,” said Rupak De, Senior Technical Analyst at LKP Securities.
HDFC Bank fell 7.5% to ₹1,454, while ICICI Bank dropped 9.2% to ₹1,053.55. The biggest losers were Bank of Baroda (BoB) and Punjab National Bank (PNB), each down 20%. Other banks like Bandhan Bank, IndusInd Bank, Federal Bank, IDFC First Bank, Axis Bank, AU Small Finance Bank, and Kotak Mahindra Bank also saw declines between 12% and 4%.
Key Points:
- Nifty Bank dropped 5,000 points (10%) due to election uncertainty.
- SBI fell 19%, HDFC Bank 7.5%, and ICICI Bank 9.2%.
- All 12 companies in the index traded lower.
- Biggest losers included Bank of Baroda and Punjab National Bank, each down 20%.
- Support for Bank Nifty is at 46,200; resistance at 48,000.
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