Selling in bank stocks to continue despite 20% fall since Feb, say analysts

Nomura pointed out that even though the outlook for banks remains positive, a prolonged conflict-like situation would be negative for global growth

Bank stocks have been among the worst hit counters during the current market meltdown. Since the beginning of February, banking shares such as ICICI Bank, SBI and Axis Bank have plunged as much as 18 per cent as against an 8-per cent decline in the benchmark S&P BSE Sensex, ACE Equity data show.

While this kind of double digit selling usually paves way for attractive entry points, this may not be true for the on-going market correction, caution analysts.

The Ukraine-Russia war, soaring Brent crude oil price, rising interest rate regime, uncertainty around sustainability of economic recovery, and the overall