The Bank Nifty, which had staged a sharp recovery in the last few days, once again saw deep cuts with ICICI Bank dropping more than 5 per cent, while Axis Bank and IndusInd Bank fell close to 3 per cent each.
Even smaller players like DCB, Bandhan Bank and the Federal Bank were trading sharply lower.
In the last few days, there has been remarkable recovery in banking stocks, but, those gains were given-up today.
One of the reasons for the fall in the stock markets and banking stocks was reports that an experimental coronavirus treatment drug failed in its first randomized clinical trial, inadvertently released results showed Thursday, dampening expectations for the closely watched drug.
A draft summary went online briefly on the website of the World Health Organization (WHO) and was first reported by the Financial Times.