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Sensex, Nifty Rebound 0.8% on Banking Rally, Snap 2-Day Losing Streak

Indian benchmark indices snapped a two-day losing streak with a strong late rally, driven primarily by buying in banking and financial stocks. The Sensex gained 650 points to close at 83,277, while the Nifty rose 212 points to 25,683, with analysts noting the broader structure remains positive above key support. Sectoral performance was mixed, with realty and PSU banks gaining while auto and metal stocks faced pressure, and capital market-related stocks fell sharply after revised RBI norms. The rupee ended largely flat as the recovery in equities helped stabilize the currency after a weak opening.

Key Points: Sensex, Nifty Snap Losing Streak with Strong Banking Rally

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

Sensex, Nifty snap two day losing streak

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

"A decisive breakout above this range could accelerate momentum toward the 25,900-26,000 zone - Analyst"

Mumbai, Feb 16

Indian benchmark indices staged a strong late rally on Monday, snapping their 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

P
Priya S
Finally some green on the screen! Was worried after the last two days. The late rally shows domestic investors are still bullish. Good to see PSU banks getting love too.
R
Rohit P
The RBI's new norms hitting capital market stocks hard is a bit concerning. Angel One down 10%! Regulatory changes always create short-term volatility. Long-term investors should use these dips wisely.
S
Sarah B
Interesting to see the divergence. Banking up, auto and metal down. Shows sector rotation is active. The Nifty holding above 25,400 is technically very positive for the trend.
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Vikram M
A respectful criticism: While the headline numbers look good, the gains seem very narrow. Midcap and Smallcap indices barely moved. The rally is being driven by a handful of heavyweights, not broad-based buying. We need wider participation for a sustainable bull run.
N
Nikhil C
Power Grid up 4.5%! Often ignored, but such a steady performer. Good to see old economy stocks like ITC and NTPC also contributing. This isn't just a tech-led rally, which is healthy. Bharat ka market strong hai! 💪

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