Indian banking equities faced selling pressure on Tuesday, with major lenders including State Bank of India, HDFC Bank, ICICI Bank, and Axis Bank posting declines.
The sector-wide pullback reflects growing investor caution ahead of the Reserve Bank of India’s monetary policy announcement scheduled for Wednesday.
Broader market indices also retreated, with the Nifty 50 dropping 175 points, or 0.
The downturn marks a sharp reversal from Monday’s session, when HDFC Bank and Axis Bank shares had surged as much as 2.5% following the release of first-quarter business updates.
In contrast, Kotak Mahindra Bank had fallen up to 3.5% during that same period, highlighting divergent sentiment within the sector even before the current risk-off mood set in.
Broader market indices also retreated, with the Nifty 50 dropping 175 points, or 0.71%, and the Sensex slipping from its opening levels.
The sell-off underscores a shift in market focus from corporate earnings to macroeconomic headwinds, particularly persistent inflation concerns and geopolitical tensions that are complicating the central bank’s outlook.