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Sensex, Nifty Rebound on Banking Rally, Snap 2-Day Losing Streak

Indian benchmark indices ended a two-day decline with a sharp late rally, driven primarily by strong buying in banking and financial stocks. The Sensex closed 0.79% higher, while the Nifty gained 0.83%, with analysts noting the broader uptrend remains intact if key support levels hold. Sectoral performance was mixed, with realty and PSU banks gaining, while auto and metal stocks faced pressure. The rally occurred despite falls in capital market-related stocks following revised RBI norms and a largely flat trading session for the Indian rupee.

Key Points: Sensex, Nifty Snap Losing Streak as Banking Stocks Rally

  • Banking stocks lead recovery
  • Nifty eyes 25,900-26,000 zone
  • Capital market stocks fall on RBI norms
  • MidCap and SmallCap indices edge higher
  • Rupee trades flat near 90.62
2 min read

Sensex, Nifty snap 2-day losing streak

Indian stock markets staged a strong recovery led by banking stocks. Sensex gained 650 points, Nifty closed above 25,680. Key levels and sectoral trends analyzed.

Sensex, Nifty snap 2-day losing streak
"The broader structure remains positive as long as the 25,500-25,400 support zone is defended. - Market Analyst"

Mumbai, Feb 16

Indian benchmark indices staged a strong late rally on Monday, snapping the two-day losing streak, as buying in banking stocks lifted market sentiment.

The 30-share Sensex ended 650.39 points, or 0.79 per cent, higher at 83,277.15. The broader Nifty rose 211.65 points, or 0.83 per cent, to close at 25,682.75.

Commenting on Nifty technical outlook, experts said that the broader structure remains positive as long as the 25,500-25,400 support zone is defended.

"On the upside, immediate resistance is seen in the 25,700-25,800 band. A decisive breakout above this range could accelerate momentum toward the 25,900-26,000 zone," an analyst stated.

Banking and financial stocks led the recovery in the second half of the session. Among the Sensex constituents, Power Grid, HDFC Bank, Axis Bank, NTPC, ITC and Asian Paints were among the top gainers, rising up to 4.5 per cent.

On the other hand, Tech Mahindra, Maruti Suzuki, Bajaj Finance, M&M and Trent ended lower, slipping as much as 1.3 per cent.

Shares of capital market-related companies came under pressure after the Reserve Bank of India revised norms related to capital market exposure.

Stocks such as BSE, Angel One and MCX fell up to 10 per cent during the session.

In the broader market, the Nifty MidCap index gained 0.48 per cent, while the Nifty SmallCap index edged up 0.11 per cent.

On the sectoral front, realty, PSU banks, private banks and pharma stocks saw strong buying interest. However, auto and metal stocks remained under pressure.

Analysts said that despite global uncertainties and regulatory changes, domestic buying in banking stocks helped the indices recover sharply and end the day in positive territory.

Rupee traded largely flat near 90.62 as market participants remained cautious, while recovery in the secondary market after a weak opening helped stabilize the currency.

"The broader tone remains range-bound, with immediate resistance placed near 90.25 and support seen around 90.90," an expert stated.

- IANS

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Reader Comments

S
Sarah B
As an NRI investor, I follow these swings closely. The late rally is promising, but the fall in Angel One and BSE due to RBI norms is a reminder of regulatory risks. Domestic institutions showing strength is the key takeaway here.
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Priya S
Finally some green on my portfolio! My SIPs in Nifty 50 and a banking fund are working. But smallcap index barely moved up 0.11%... that's worrying. The rally seems very narrow, focused only on few heavyweights.
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Vikram M
Respectfully, while the headline number looks good, we must look deeper. Auto and metal stocks are under pressure, and Mid/Small caps are not participating fully. This isn't a broad-based rally. RBI's new norms have rightly spooked the fintech/ brokerage stocks. Caution is still needed.
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Rohit P
PSU banks getting buying interest is the real story! After years of being ignored, they are finally getting their due. Combined with strong private banks, the banking sector is carrying the market on its shoulders. Bullish on the sector.
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Michael C
Interesting to see the rupee holding steady despite the volatility. A stable currency along with a recovering equity market is a good sign for foreign investors considering India. The 25,400 support on Nifty holding is technically very positive.

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