Bank stocks in meltdown mode,fall 3.5%

“Selling was not confined to banking stocks,it spread to other sectors also”,said Manoj Choraria,a Delhi-based stock broker.

Country’s largest lender in the private sector,ICICI Bank,was among the major losers,losing 3.88 per cent to Rs 1,027.40,while HDFC Bank closed 2.90 per cent down at Rs 2,142.15.

Stocks of country’s largest state-run State Bank of India,finished the day 3.91 per cent down at Rs 2,560.65.

Analysts said besides fears of a rate hike,disappointing third quarter earnings by IT bellwether Infosys Technologies,which missed the market estimates and weak opening on the European equity markets,further fuelled the selling spree.

Bank of India fell by 2.79 per cent to Rs 428.80,Canara Bank by 2.79 per cent to Rs 572.70,Yes Bank by 2.80 per cent to Rs 267.50 and Indusind Bank by 3.64 per cent to Rs 233.95.

Meanwhile,the BSE benchmark index Sensex finished at fresh four-month low of 19,182.82,down 351.28 points,or 1.80 per cent.