The Nifty Bank index plunged by 1.47% to 50,559 points on 25 July, marking its third consecutive day of losses. The decline was mainly due to a sharp drop in Axis Bank’s stock.

After yesterday’s report regarding Axis Bank’s Q1 FY25 results, the market sentiment was sour, and the former bank’s shares slid harshly in today’s session.

The stock opened with a 3.14% drop, falling to Rs 1,200, and continued to decline, reaching a 7-week low of Rs 1,162. The 6.2% drop marked the largest intraday decline since 4 June.

The Nifty Bank index lost 670 points in today’s session, out of which Axis Bank contributed over 318 points. Axis Bank’s drop contributed nearly 50% to the index’s overall decrease, whereas ICICI Bank declined by 2.5%, accounting for about 38% of the index’s drop.

SBI, IndusInd Bank, Federal Bank, AU Small Finance Bank, IDFC First Bank, and Bank of Baroda were down by 0.33% to 1.2%.

Kotak Mahindra Bank and HDFC Bank saw modest gains between 0.3% and 0.5%.

The index has dropped by 3.03% so far this week.

Both benchmark indices have continued their downward trend, with the Nifty 50 down by 0.83% and the Sensex down by 0.75%.

The slumping sentiment was also triggered by weak US benchmark performance yesterday, as the S&P 500 and Nasdaq had their worst day since 2022 after disappointing earnings from Tesla and Alphabet.

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