Sensex, Nifty hold modest gains; SBI sparks PSU Bank rally after steady Q1 results

PSU Banks lead market gains

Indian benchmark indices Sensex and Nifty continued to trade with modest gains on August 11, supported by banking, auto, and realty stocks. Broader markets also supported the enthusiasm in the markets as they gained in tandem amid supportive global cues.

Around noon, the Sensex was up 227.72 points, or 0.29 percent, at 80,085.51, while the Nifty rose 74.45 points, or 0.31 percent, to 24,437.75. The market breadth was nearly balanced, with 1,774 shares advancing, 1,834 shares declining, and 133 unchanged.

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The Nifty PSU Bank index topped the sectoral charts, buoyed by strong gains in State Bank of India. The lender’s robust June-quarter performance and upbeat guidance drew bullish commentary from brokerages, with several projecting over 20 percent upside potential in the stock.

On the flip side, oil and gas and consumer durables were the only sectors in the red. The Nifty Consumer Durables index saw sharp fall, weighed down by PG Electroplast shares, which hit lower circuit earlier in the day.

The India VIX—seen as the market’s fear gauge—rose 3 percent, signalling that traders are bracing for near-term swings, especially on tariff-related developments.

Technical indicators are flashing a potentially significant inflection point. Analysts at ICICI Securities pointed out that after a cumulative six-week correction of 5 percent, the Nifty’s weekly stochastic reading has plunged to 2.7—the lowest since 1995—signalling oversold territory. This suggested that any favourable news on tariffs could trigger a technical pullback, with the index potentially climbing towards 24,800 in the coming weeks.

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