Banking stocks came under heavy selling pressure on Friday with the Nifty Bank index, a gauge of performance of the baking stocks on the NSE, slipping nearly 2 per cent in intra-day deals. In contrast, the Nifty50 index lost nearly 2 per cent.
The broad-based sell-off in the banking pack, analysts said, was a knee-jerk reaction to the developments with US-based Silicon Valley Bank (SVB) that announced a share sale to shore up its finances, following a significant loss on its portfolio.
SVB Financial Group – the parent company of SVB – sold $21 billion worth of securities from its portfolio. The move was triggered by high deposit outflows at the bank due to a broader downturn in the startup