Bank Nifty extends decline for 2nd day; PSU bank index falls 1.4%: What should investors do?

Nifty Bank declines

• Nifty Bank index fell 0.65 percent, led by sharp declines in PSU bank stocks
• Yes Bank and IndusInd Bank were top losers, dropping over 4 percent each
• HDFC Bank, Kotak Mahindra Bank, and SBI traded with marginal gains

Did our AI summary help?

The Nifty Bank index extended decline for the second consecutive session after a four-day gaining streak. PSU bank stocks declined sharply, while some of the heavyweight private banks bucked the trend.

The Nifty Bank index was down 0.65 percent to 59,499.40, as seen at 2:05 pm. The Nifty PSU Bank index meanwhile fell around 1.4 percent to 8,860.05.

Top losers on Nifty Bank today:

Yes Bank and IndusInd Bank shares were the top losers on the index, falling more than 4 percent each to trade at Rs 21.78 apiece and Rs 907.15 apiece respectively. Federal Bank shares fell over 3 percent.

AU Small Finance Bank, Canara Bank, Punjab National Bank (PNB) and Bank of Baroda shares dropped more than 2 percent each. IDFC First Bank and Union Bank of India shares were down more than 1 percent, while Axis Bank and ICICI Bank shares were trading in the red with marginal losses.

Bucking the trend, HDFC Bank, Kotak Mahindra Bank and State Bank of India (SBI) shares were trading in the green with marginal gains.

Technical view on Bank Nifty:

Bank Nifty continues to show relative outperformance, maintaining a bullish structure despite mild resistance near 60,200, said Emkay Global Financial Services. A sustained move above this level may fuel further upside, while the 59,200–58,900 zone is expected to act as a strong support cushion, the brokerage said.

Axis Securities meanwhile said that Bank Nifty is centered around the 60,000 level, which is acting as a key pivot for the current expiry. 59,500 is a strong support zone, supported by heavy Put open interest, while 60,000 remains the major resistance, marked by the highest Call open interest, according to the domestic brokerage.

"Bank Nifty exhibited relative resilience near 59,800–60,000, but hesitation around 60,000 underscores indecision in the banking complex. A break above 60,000 could revive short-term bullish sentiment, while a breach of 59,500–59,600 might signal extended consolidation," said Choice Broking.

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