Top News

Monday 23 March was a very bad day for the banking sector in the stock market. A sharp fall of more than 3% was recorded in the Bank Nifty index, which increased uneasiness among investors. By afternoon, Bank Nifty fell by about 3.2% and reached around 51,968. The impact of this decline was clearly visible on both private and government banks.

Even the big banks of the country could not escape this decline. Especially a continuous decline was seen in the shares of HDFC Bank. Recently, the sudden change in the top post of the bank weakened the confidence of investors a bit, due to which the pressure on the shares increased. At the same time, shares of government banks like Union Bank, Canara Bank and Punjab National Bank also registered a decline of more than 4%.

Crude oil prices became a major reason

A major reason behind this decline is the rising prices of crude oil in the international market. Brent crude reached above $112 per barrel, while US crude oil also remained around $99. When oil is expensive, imports become expensive for the country, which increases pressure on inflation and interest rates. This has a direct impact on the banking sector because borrowing becomes expensive.

Heavy selling by foreign investors

Another big reason is the continuous selling by foreign investors (FPIs). In the month of March itself, he has sold Indian shares worth billions of dollars. The special thing is that he has withdrawn maximum money from banking and financial sector. This is because this sector is big and it is easy to sell shares in it.

Why is the banking sector under the most pressure?

The stake of foreign investors in the banking sector is very high. When they withdraw money, its effect is seen rapidly. Experts believe that due to the current global tension and uncertainty, investors want to reduce risk, hence they are withdrawing money rapidly. According to experts, until the international situation becomes normal and the market becomes stable, banking stocks may remain under pressure. However, for long-term investors this decline can also turn into an opportunity.