Sensex drops 417 points after bank selloff over RBI rules

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.