It's not being banned, just being regulated so that illegimate(black money) activities can be tracked. I don't know why is there so much hype in the market. It's time to buy people. 
Also, this is not something very new and who really cares about India. It is not as powerful and developed as China, Japan, Canada etc. are. Let India do what suits it best. Such bad news dont really affect bitcoin. I am with you all in this matter. Honestly, the real reason which many deny is the big whales create such situations so that small investors sell out their coins. After all, this is how they make money.