Banking stocks have fallen badly in the last few days. Investors continued to remain worried that the new lending norms will hit net interest margins.
Apart from this investors remained worried that non performing assets may not yet have peaked and there would be a few more quarters of pain.
Competition from new banks like Bandhan Bank and IDFC bank, apart from a host of payment banks, is only going to intensify worries for the sector.
Also, it is unlikely that the Reserve Bank of India will cut interest rates anytime soon, which means there is no incentive for investors to now bet on these stocks.
Interestingly, select private sector banking stocks like Axis Bank, South Indian Bank and J&K Bank have also joined the growing list of 52-week lows. In fact, even stocks like ICICI Bank, which hit a 52-week low of Rs 248 in Sept, is not too far away from going back to that level.