Banking stocks came crashing down sharply as foreign brokerage CLSA cut price targets on these stocks. IndusInd Bank, where the price cut was the sharpest fell 7 per cent, while ICICI Bank and Axis Bank dropped 6 per cent each.
Even HDFC Bank, where there was a price target cut, fell as much as 2 per cent in trade. Many brokerages had upgraded the stock of HDFC Bank to a buy, following its numbers. Most brokerages feel that HDFC Bank is the most resilient to the economic shock created by the coronavirus.
Other banking stocks that were down in trade were some of the smaller banks, including Bandhan Bank, RBL Bank, the Federal Bank and DCB Bank.
The next two quarters are likely to be bad for most of these banks. In fact, some of them which have exposure to the MSME sector and micro finance are likely to be the worst impacted.