Stock Market Fall: India’s three largest lenders wipe out nearly ₹50,000 crore in market cap

India’s three largest lenders by market value, HDFC Bank Ltd., ICICI Bank Ltd. and State Bank of India Ltd. have wiped out nearly ₹50,000 crore in market capitalisation combined on Wednesday, March 11, and are the primary contributors to the Nifty 50 fall in mid-week trading.Shares of HDFC Bank have lost nearly 2% in today’s trading session, and have gained in only three out of the last 12 trading sessions.

Today’s fall has resulted in HDFC Bank losing over ₹25,000 crore in market capitalization.
With this, HDFC Bank’s market capitalization is also back below the mark of ₹13 lakh crore.Brokerage firm CLSA, in a note on Wednesday, said that the stock has the potential to return more than 25% in the next 12 months as investors concerns abate over time.

ICICI Bank has not declined as much as HDFC Bank, but is still down 1% on Wednesday, having lost over ₹10,000 crore in market capitalisation in today’s session.

Shares of ICICI Bank have also gained only once in the last eight trading sessions.On similar lines, CLSA also projected a 25%-plus upside for ICICI Bank over the next 12 months, banking on a potential revival in the lender’s retail loan book.

None of the analysts tracking either ICICI Bank or HDFC Bank have a “sell” recommendation on them.

Barring the rebound on Tuesday, shares of SBI have also declined in seven out of the last eight trading sessions.

The recent fall has taken SBI’s market capitalisation below the mark of ₹11 lakh crore, with ₹14,000 crore being wiped out in today’s session itself.

None of the 49 analysts tracking SBI have a “sell” rating on the stock either.

The three stocks are the top contributors to the fall on the Nifty Bank index as well, which is down over 1,000 points, giving up all the gains made during Tuesday’s session.