Markets 'overpricing' banks' risk from Adani exposure: Societe Generale

India's banking sector has been one of the hardest hit by the collateral damage from the sharp correction in the Adani group stocks over the past week post the Hindenburg report: SocGen

Markets are "overpricing" the risk to Indian lenders from their exposure to Adani Group, which was targeted last week in a report by short-seller Hindenburg Research, Societe Generale said, adding that a sell-off in banking shares seems overdone.

India's Nifty Bank index lost as much as 7.7% to hit its lowest in three months since the New York-based short-seller alleged improper use of offshore tax havens and flagged concerns about high debt at tycoon Gautam Adani's conglomerate. The broader Nifty index shed up to 4% over the period.

The allegations in the report, which the ports-to-energy conglomerate has denied, triggered a $65