Banking stocks came under heavy selling pressure after the Punjab government announced farm loan waiver for small and marginal farmers, which is likely to impact the PSU banks.
Central Bank of India fell 2.74 per cent, Punjab National Bank 2.31 per cent, Axis Bank 1.35 per cent, Bank of Baroda 0.60 per cent, HDFC Bank 0.55 per cent, Kotak Bank 0.55 per cent, Oriental Bank of Commerce 0.87 per cent, Andhra Bank 0.51 per cent, UCO Bank 1.57 per cent, IDBI Bank 1.58 per cent and Canara Bank 0.93 per cent which pulled down the BSE banking index by 0.16 per cent. However, state-run SBI bucked the trend and rose 0.52 per cent.
The BSE 30-share barometer, after charting the positive terrain for most of the session, touched a high of 31,392.53, but slipped to 31,261.49 in late afternoon profit booking, especially in power, banking and FMCG counters. The index finally settled at 31,297.53 points, down 14.04 points, or 0.04 per cent, over the previous close.