The Nifty Bank index finished the November futures & options (series) more than five percent lower. The fall mirrors the decline in the headline Nifty50 index, closing the November F&O series 321 points or 1.8 percent lower.
This is the first time in four months that the banking index dropped for the month, having risen 3-5 percent in each of the preceding three months.
Here's how the Bank Nifty index - comprising 12 stocks including SBI, HDFC Bank, Kotak Mahindra Bank, ICICI Bank and Axis Bank - fared in the recent past:
| Series | Bank Nifty | Change (absolute) | Change (%) |
| November | 37,402.3 | -2,144.2 | -5.4 |
| October | 39,509 | 2,083.9 | 5.6 |
| September | 37,425.1 | 1,807.6 | 5.1 |
| August | 35,617.6 | 926.1 | 2.7 |
| July | 34,691.5 | -135.5 | -0.4 |
| June | 34,827 | -268.1 | -0.8 |
| May | 35,095.05 | 1,380.6 | 4.1 |
The heavyweight-banking space has taken the back seat on Dalal Street for much of 2021 and IT took the lead.
"Banking is struggling due to poor credit growth... Another factor weighing against banking is the sustained selling in bank stocks by FIIs," VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, told CNBCTV18.com.
All but one of Bank Nifty constituents ended the November series with a negative return. IndusInd Bank, Axis Bank and ICICI Bank are the worst hit.
Here's how the Bank Nifty stocks fared in the November series:
| Nifty Bank stock | November series return (%) |
| Bandhan Bank | 5.8 |
| RBL Bank | 0.4 |
| IDFC First Bank | -1.8 |
| State Bank of India | -1.9 |
| Punjab National Bank | -3.1 |
| Kotak Mahindra Bank | -3.3 |
| AU Small Finance Bank | -3.3 |
| Federal Bank | -3.6 |
| HDFC Bank | -4.4 |
| ICICI Bank | -5.8 |
| Axis Bank | -10.4 |
| IndusInd Bank | -18.4 |
Vijayakumar believes top-quality banks are now becoming attractive from an investment perspective. "Investors can use market corrections to buy high-quality bank stocks. There are signs of improving credit growth," he said.
Historically, November has been a good month for the banking index. In the past three years, the gauge finished the November F&O series with a gain of at least 2.7 percent.
| November series | Bank Nifty | Change (absolute) | Change (%) |
| 2020 | 39,509 | 2,083.9 | 5.6 |
| 2019 | 37,425.1 | 1,807.6 | 5.1 |
| 2018 | 35,617.55 | 926.1 | 2.7 |
| 2017 | 34,691.5 | -135.5 | -0.4 |
| 2016 | 34,827 | -268.1 | -0.8 |
Most banking stocks fell on Thursday, with the Nifty Bank index finishing 0.21 percent lower. Volatility prevailed ahead of the expiry of the monthly derivatives contracts due by the end of the session.
The market will enter the December series on Friday, November 26.
First Published: Nov 25, 2021 1:33 PM IST
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