New Delhi, Sept. 1 -- Banking stocks emerged as top laggards in August, with the Nifty Bank shedding another 4.12% to record its worst monthly performance since January 2024, taking its cumulative two-month decline to nearly 6.4%.

Selling was broad-based, as 10 out of the 12 index constituents ended the month in the red. The steepest fall was seen in IndusInd Bank, which dropped 7.4%, followed by Federal Bank, ICICI Bank, Canara Bank, Punjab National Bank, and HDFC Bank, which lost between 5% and 7%.

The underperformance of banking heavyweights also dragged down the benchmark indices, sending Nifty 50 and Sensex lower by 1.3% and 1.8%, respectively, in August.

The bleed in domestic-focused stocks was largely driven by weakness in the b...