Bank shares continue to remain under massive selling pressure, IndusInd Bank dives 24%

Bank shares continued to face heat of heavy selling pressure in the equity market, tumbling up to 24 per cent on Wednesday led by IndusInd Bank.

"With the Supreme Court not providing any respite to telecom players, the banking stocks which have exposure to the telecom sector were most impacted today," Vinod Nair, Head of Research, Geojit Financial Services said.

The Supreme Court Wednesday pulled up the Centre and telecom companies for doing self-assessment or reassessment of the Adjusted Gross Revenue (AGR) dues fixed by the apex court in its verdict given on October 24 last year.

Shares of IndusInd Bank plummeted 23.90 per cent, Kotak Mahindra Bank 11.23 per cent, HDFC Bank 9.92 per cent, Federal Bank 6.79 per cent, City Union Bank 5.22 per cent, AXIS Bank 3.36 per cent, ICICI Bank 2.96 per cent and SBI 0.12 per cent on the BSE.

Tracking decline in these companies, the BSE bank index dropped 6.99 per cent.

"The fall was widespread but it was banking and financial pack which was hammered badly. Markets are not showing any sign of slowdown despite the sharp correction in the benchmark and stocks across the board. And, the pressure in the banking space has raised fresh concerns, which might cascade in the following sessions too," Ajit Mishra, VP - Research, Religare Broking Ltd said.

Weakness in bank shares are playing a major role in dragging the BSE benchmark index which further tumbled 1,709.58 points or 5.59 per cent on Wednesday.