Nifty Bank Slumps Below 54,000 as Rate-Hike Fears and Rising Yields Trigger Two-Day Rout
Banking stocks came under intense selling pressure on Monday, dragging the Nifty Bank index below 54,000 for the first time since early June after a two-day slide of nearly 1,800 points. The decline reflects mounting concern that the Reserve Bank of India may keep policy tighter for longer as bond yields rise and rate-sensitive sectors reprice risk. Market participants said the selloff has been amplified by profit-taking in heavyweight lenders, a cautious macro outlook and a broader reassessment of valuation support for financials. Traders will now watch bond markets, RBI commentary and credit-growth signals for clues on whether the correction deepens or stabilises.
