At 10 a.m., the stock was down 2.5 per cent at Rs 404.15. In contrast, the BSE banking index traded 0.7 per cent lower.
Federal Bank was the top traded stock on the broader BSE 500 index. 85 lakh shares or 4.98 per cent of equity changed hands on the exchanges as HSBC sold its stake in Federal Bank.
HSBC's stake was bought by a clutch of FII & DII investors. The deal took place at Rs 401- Rs 402 per share.