Banking stocks staged a strong rebound on Tuesday morning, with the Bank Nifty rising about 1.5% and all 14 constituent stocks trading in the green, supported by improving global sentiment and easing crude oil prices after Monday’s sharp sell-off.
At 10:44 a.m., the Nifty Bank index was trading 1.5% higher at 56,854, outperforming the broader market. The Sensex gained 586 points, or 0.8%, to 78,153, while the Nifty 50 advanced 185 points to 24,213. Market breadth remained strong with 2,817 stocks advancing against 733 declines, indicating broad-based buying interest.
Federal Bank, ICICI Bank lead gains
Among individual banking stocks, Federal Bank led the rally, rising about 2.4%. ICICI Bank shares advanced more than 2%, making them one of the top gainers on the NSE Nifty 50.
Other private lenders also traded firmly in positive territory.
- IndusInd Bank gained around 1.7%
- HDFC Bank and Axis Bank rose about 1.5% each
- Kotak Mahindra Bank added nearly 1.3% in early trade
PSU banks join the rally
Public sector banks also participated in the upward momentum.
- Union Bank of India climbed about 1.6%
- Bank of Baroda, State Bank of India, Punjab National Bank, and Canara Bank gained between 1% and 1.4%
Smaller lenders also traded higher, with Yes Bank and AU Small Finance Bank posting gains, while IDFC First Bank recorded modest advances.
Recovery after Monday’s sharp sell-off
The rebound follows heavy selling pressure seen on Monday, when the Bank Nifty plunged more than 3%. The index opened with a sharp gap-down of nearly 1,650 points and touched an intraday low of 55,270 before recovering slightly toward the close.
Analysts believe Tuesday’s rise reflects a technical bounce after the index slipped into oversold territory during the recent correction.
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 increasing the likelihood of a short-term recovery in banking stocks.
Global cues support market sentiment
Improving global cues also contributed to the rebound. Oil prices, which had surged earlier due to escalating tensions in the Middle East, eased after comments from U.S. President Donald Trump suggesting the conflict with Iran could be nearing an end.
The decline in crude prices helped ease fears of prolonged supply disruptions and supported risk appetite in equity markets.
Indian markets opened on a positive note as easing geopolitical concerns boosted investor confidence. However, market sentiment remains fragile and volatility could persist as investors continue to track geopolitical developments and global macroeconomic indicators.
Key technical levels to watch
From a technical perspective, analysts say the 56,700–56,800 zone remains a critical resistance band for the Bank Nifty. A sustained move above this range could push the index toward the 57,700 level.
On the downside, the 56,100–56,000 range is seen as an immediate support zone, which could act as a key demand area if selling pressure re-emerges.
Market participants are expected to closely monitor global developments, crude oil price trends and geopolitical updates, which are likely to remain key drivers for banking stocks in the near term.
Kaashika is a social media strategist and financial content creator at Lakshmishree. She specialises in simplifying complex IPO and stock market concepts into clear, easy-to-understand content. Having created over 500+ pieces of financial content across reels, blogs, website posts and digital creatives, Kaashika helps audiences connect with the world of finance in a more accessible and engaging way.
