Banking shares were badly hit as markets nosedived in trade today. PSU banking stocks came in for some heavy selling pressure with the Bank Nifty shedding a huge 2.5 per cent.
Private sector banks also fell sharply in trade with IndusInd bank, Kotak Bank, Yes Bank, Axis Bank and ICICI Bank seeing cuts between 2-4 per cent.
Markets have been disappointed on the lack of reforms by the government with the Sensex and the Nifty falling. Reports that two crucial legislations which include the Land Acquisition Bill and the Goods and Services Tax would be referred to a select committee
Investors also chose to book profits after a two day spectacular rally. There were also worries that the Consumer Price Inflation (CPI) data and the industrial output data may not come in line for the markets. Any rise in the CPI data may have a telling effect on the market.