The Sister's Holy Hammer affects the "Possessed" and those possessed, not the whole warband. And as the Undead, just those with that special rule (vampire, dire wolves, zombies) not the others in that warband (necromancer, dregs, and ghouls). The original warbands of the core book each had a bonus and penalty build into them. Like the Witch Hunters special rule was against the Spell casters themselves not the whole warband that had a magic user.
That being said, I would say and the "Demonic" would also fall in the same category and "Possessed" since not all the COC have the Demonic rule, not all the COC would be affected in the same way from the Sigmarite Hammer.
I play the COC quite well, and would see the Sister's hammer as quite a threat, and would agree still, the Demonic rule the same as Possessed special rule for game play. But before I would give the Sister's the advantage in a fight, remember the only Demonic COC are the Plague Bearers and Nurglings, and the Cart if you use it as a playable henchman. My group mostly uses the cart like a Standard, it never goes into battle itself, just stays on the edge table.