ICICI Bank shares fall 4%, while HDFC Bank shares are down 3% contributing the most to the decline on Nifty Bank index.
Banking shares fell on April 7, tracking the bloodbath in the overall market as US President Trump’s reciprocal tariffs raised concerns of a possible recession, sending the Nifty Bank index down over 3 percent in early trade.
US President Trump introduced a slew of tariffs on multiple countries, with India being charged 26 percent on all its exports bound for America. Experts have raised fears of a global trade war as some nations have retaliated with counter-measures.
Vinod Nair, Head of Research at Geojit Investments said, “The recent implementation of higher-than-anticipated US tariffs has had a significant impact on global markets, triggering a bearish trend as investors assess broader implications. The likelihood of retaliatory measures against the US has further heightened uncertainty. US bond yields and oil prices are trending downward, reflecting concerns over potential economic slowdown and increased recessionary risks.”
HDFC Bank and Canara Bank shares were the top losers on the Nifty Bank index, tumbling over 4 percent in morning trade. Axis Bank, IDFC First Bank, Bank of Baroda and IndusInd Bank shares were meanwhile trading nearly 4 percent lower. Heavyweights State Bank of India (SBI) and ICICI Bank shares also dropped sharply by over 3 percent, significantly contributing to the slump on the index
Another heavyweight, HDFC Bank was trading nearly 3 percent lower, with the fall in the share prices of ICICI Bank and HDFC Bank among the top contributors to the decline on Nifty Bank index.
Punjab National Bank (PNB), AU Small Finance Bank and Federal Bank shares were also trading in the deep red with strong losses.
Source: www.moneycontrol.com