Benchmark indices fell sharply in trade as crude oil prices continued to slide, triggering a fresh round of selling in names led by Reliance Industries and ONGC.
Many private sector banking names did not hit 52-week lows, but, came crashing down with Yes Bank and ICICI Bank down more than 2 per cent each, while HDFC Bank was down 1.9 per cent.
Banking stocks are heavily owned by foreign institutional investors, which is why they have been falling sharply, as these investors continue to sell shares in India.
There are worries that margins may fall, and non performing assets increase, due to the new guidelines from the Reserve Bank of India.
Axis Bank is set to announce its results later today and this may offer more cues for the banking sector.