The Nifty Bank index in trade on Friday (September 4, 2020) dived by close to 3% in early trade to 22876.90 in comparison to previous day's close of 23530.85. But later the index was off lows but still down by 1.8% or 423.85 points.On similar lines, Nifty PSU Bank and Nifty Private Bank also tumbled in line by 2.8% each.
In early trade tracking the steep correction in the index, SBI was the top laggard losing as much as 3.4% to day's low of Rs. 205.85 apiece on the BSE.
Among private bank stocks, HDFC Bank, ICICI Bank, Axis Bank all slipped in trade by up to 2%.
Nifty Financial Services also lost 2.5% with companies such as HDFC losing proportionately.
The drag on these sectoral indices came after the SC provided repreive to the borrowers in loan moratorium case saying that they need not tag standard accounts which are not NPA as on August 31, 2020 as bad until further notice. This is also for borrowers which defaulted on repayment of loan even before the pandemic crisis. The SC will again hear the issue on interest waiver on deferred EMIs under moratorium on September 10, 2020.
In comparison, the headline indices were still trading lower by over 1%, with Nifty below 11400 mark and Sensex down close to 500 points at 38507 points.