Bank stocks on Wednesday plunged up to over 7 per cent on emergence of profit-booking, and played crucial role in dragging the broader market lower.
IndusInd Bank, which was the top laggard in the Sensex pack, tanked 7.43 per cent on the BSE.
Shares of ICICI Bank plunged 7.35 per cent, Federal Bank declined 5.76 per cent, Axis Bank fell 4.30 per cent, SBI dipped 4.08 per cent, City Union Bank fell 3.57 per cent, Kotak Mahindra Bank ended 3.17 per cent lower, HDFC Bank dipped 0.81 per cent and RBL Bank declined 0.61 per cent.
"Profit-booking was seen in Bank Nifty which rallied 11 per cent so far this month," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd said.
The BSE bankex index tumbled 4.08 per cent.
The 30-share BSE Sensex, which opened on a strong note, came under heavy selling pressure in afternoon trade. It finally closed at 34,868.98, down 561.45 points, or 1.58 per cent.