Bank Nifty rises nearly 1.5% as banking stocks extend rebound; ICICI Bank, HDFC Bank, Federal Bank lead gains

Bank Nifty

• Bank Nifty rebounds 1.5 percent, all 14 stocks trade in green
• Federal Bank, ICICI Bank lead gains among banking stocks
• Easing oil prices and global cues support market recovery

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Banking stocks extended their rebound on Tuesday morning, with the Bank Nifty rising 1.5 percent and all 14 constituent stocks trading in the green. Improving global sentiment and easing crude oil prices supported a recovery after Monday’s sharp sell-off.

At 10:44 am, the Nifty Bank index was up 1.5 percent at 56,854, outperforming the broader market. The Sensex rose 586 points or 0.8 percent to 78,153, while the Nifty gained 185 points to 24,213. Market breadth remained strong with 2,817 shares advancing against 733 declines.

All 14 stocks on Bank Nifty rise; check top gainers

Among individual banking stocks, Federal Bank led the gains, rising about 2.4 percent. ICICI Bank shares advanced more than 2 percent, featuring among the top gainers on the NSE Nifty 50 as well. Other private bank stocks also traded firmly in positive territory. IndusInd Bank gained around 1.7 percent, while HDFC Bank and Axis Bank rose about 1.5 percent each. Kotak Mahindra Bank added around 1.3 percent in early trade.

PSU bank stocks also participated in the rally. Union Bank gained about 1.6 percent, while Bank of Baroda, State Bank of India, Punjab National Bank, and Canara Bank rose between 1 percent and 1.4 percent. Smaller lenders such as Yes Bank and AU Small Finance Bank also traded higher, while IDFC First Bank posted modest gains.

• Also read | Nifty top gainers: IndiGo, Asian Paints among leading stocks as crude price plunge lifts global sentiment

The recovery comes a day after the banking index witnessed heavy selling pressure. Earlier Monday, the Bank Nifty had plunged more than 3 percent, opening with a sharp gap-down of nearly 1,650 points and touching an intraday low of 55,270 before recovering slightly toward the close.

Bank Nifty technical outlook: Check support, resistance levels

Analysts said the rebound reflects a technical bounce after the index slipped into oversold territory during the recent sell-off. According to Aakash Shah, Technical Research Analyst at Choice Equity Broking, the Relative Strength Index (RSI) had dropped to around 24.9, signalling oversold conditions and raising the possibility of a short-term recovery in banking stocks.

Improving global cues have also supported the rebound. Oil prices, which had surged sharply earlier amid escalating tensions in the Middle East, eased after comments from US President Donald Trump suggesting the conflict with Iran could be nearing an end. This eased fears of prolonged supply disruptions.

Ponmudi R, CEO of Enrich Money, said Indian markets opened on a positive note as easing geopolitical concerns helped restore risk appetite. However, he cautioned that sentiment remains fragile and markets could remain volatile as investors continue to track geopolitical developments and global macroeconomic cues.

From a technical perspective, analysts said the 56,700-56,800 zone remains an important resistance band for the Bank Nifty, and a sustained move above this range could push the index toward the 57,700 level. On the downside, the 56,100-56,000 region is seen as an immediate support zone, which could act as a key demand area if selling pressure re-emerges.

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