Sell-off in banking and financial stocks drags benchmark indices down

The Bank Nifty declined 2.6%, with several big names posting losses in excess of 4%

A sharp sell-off in banking and financial stocks dragged the benchmark indices down on Friday. The Sensex fell 260.31 points or 0.84 per cent to end at 30,672.59, while the Nifty declined 67 points or 0.74 per cent, to close at 9,039.25.

The Bank Nifty declined 2.6 per cent, with several big names posting losses in excess of 4 per cent. Analysts said investors shelved financial stocks on worries that an extension in the moratorium would lead to a pile-up in bad loans.

The RBI on Friday extended the moratorium by another three months. The central bank also relaxed terms