Shares of Dena Bank and Vijaya Bank today saw heavy selling, falling up to 7.6 per cent, as both the stocks will be excluded from the National Stock Exchange's derivatives segment with effect from November 29.
Dena Bank's scrip ended the day 7.59 per cent lower at Rs 49.90 on the BSE. In intra-day trade, the stock had lost 9.44 per cent to Rs 48.90.
Shares of Vijaya Bank plunged 5.35 per cent to settle at Rs 38.90 after falling 6.81 per cent to Rs 38.30 intra-day.
In the process, the market value of Dena Bank fell by Rs 144 crore to Rs 1,746 crore, while Vijaya Bank's m-cap slipped by Rs 109 crore to Rs 1,927 crore.
No contracts shall be available for trading in Dena Bank and Vijaya Bank with effect from November 29, 2013, NSE had said in a circular yesterday.
NSE said futures and options (F&O) contracts for new expiry months in Dena Bank and Vijaya Bank will not be issued on expiry of existing contract months.
"However, the existing unexpired contracts of expiry months September 2013, October 2013 and November 2013 would continue to be available for trading till their respective expiry and new strikes would also be introduced in the existing contract months," it added.
Overall, the banking stocks were hit hard today after stock markets fell following unexpected hike in key rate by the Reserve Bank to tame inflation.
The benchmark S&P BSE Sensex fell 383 points, the most in three weeks, after RBI Governor Raghuram Rajan unexpectedly raised repo rate to combat inflation and partially rolled back liquidity tightening measures.
Interest rate sensitive realty, bank and auto stocks fell on concerns that higher rates would make loans more expensive and reduce their business.
RBI raised the short-term policy repo rate to 7.5 per cent from 7.25 per cent, saying inflation had to be lowered to more tolerable levels. The move may increase interest rates on home and auto loans.