Sensex drops 417 points after bank selloff over RBI rules
Business
Markets took a hit on Tuesday as the Sensex dropped 417 points to 76,886.91 and the Nifty slipped by 97 points to 23,995.70.
The main reason? Big banks like ICICI, HDFC, Axis Bank, and SBI saw heavy selling after the RBI confirmed its expected credit-loss framework (implementation begins 1 April 2027).
RBI credit loss framework spooks investors
The Reserve Bank of India introduced a fresh credit loss framework that spooked investors: public sector bank stocks fell over 2%, and private banks weren't far behind.
Meanwhile, midcap and small-cap stocks actually rose a bit.
Add in rising oil prices and uncertainty around the US Federal Reserve decisions, and it's no surprise the rupee weakened too, closing at 94.56 against the US dollar.