Bank Nifty rebounds 500 pts from day's low, led by PSU banks; here are the triggers

Bank Nifty on Tuesday rebounded 500 points from the day’s low to hit an intraday high of 55,662, lifted by gains in select private and public sector lenders.

The index snapped a two-day losing streak, closing 0.4 percent higher. Nifty PSU Bank also ended more than 1 percent up, reversing the previous session’s decline.

AU Small Finance Bank was the top gainer in the Nifty Bank index, rising nearly 4 percent to Rs 731.65 on the NSE. The stock advanced after brokerage Motilal Oswal projected that the lender’s earnings would accelerate from the second half of FY26, with loan growth expected at a compounded 24 percent over FY26-28. The brokerage retained a “hold” rating with a median price target of Rs 773.

IndusInd Bank gained after the lender appointed Viral Damania as chief financial officer, effective September 22. The move follows last month’s announcement of veteran banker Rajiv Anand taking charge as chief executive officer for a three-year term.