The Nifty Bank index opened higher but lost early gains, trading marginally lower at 56,291.85 points at 11 am with five stocks advancing against nine declines. Despite the Federal Reserve's quarter percentage point rate hike, the banking sector failed to sustain its initial momentum. HDFC Bank emerged as the top laggard, falling 0.89% to ₹715.10 per share, while Yes Bank and ICICI Bank also faced selling pressure near resistance levels. Bank of Baroda, State Bank of India, Federal Bank, IDFC First Bank were among other top laggards in the banking space. However, IndusInd Bank, Axis Bank, Punjab National Bank, AU Bank, and Kotak Bank emerged as top gainers, providing some support to the broader banking sector performance.
The Indian equity markets extended gains on Thursday, with frontline indices posting significant advances despite global uncertainties. According to latest reports from The Economic Times, the Sensex gained around 245 points to trade at 74,586 while the Nifty 50 gained more than 104 points to trade at 23,321 as of 11:15 am. This represents an improvement from the previous session's modest gains, with the benchmark indices now trading above key resistance levels and showing stronger momentum compared to earlier trading hours. The Nifty Midcap 100 and Nifty Smallcap 100 rose nearly 1% each, indicating that broader market segments have also joined the rally. However, markets remained volatile as investors reacted to the US Federal Reserve's first rate hike in three years, which led to a slip in US stock markets on Wednesday.
HDFC Bank shares were trading 0.89% lower at ₹715.10 per share with a market capitalisation of ₹11,01,728.45 crore. The stock has delivered 3% return in one week and has declined 26% in one year, touching its 52-week high of ₹1,020.50 on October 23, 2025, and 52-week low of ₹681.90 on September 11, 2026. According to Kunal Kamble, Sr. Technical Research Analyst at Bonanza, HDFC Bank stock has seen sharp correction and is currently hovering close to its support zone of 684-636. "The stock has reached a very attractive level that warrants attention, but it is better to wait for proper confirmation at the current juncture. A close above 735 could provide an opportunity to accumulate the stock," Kamble explained. The expert noted that buying has been seen in the stock over the past four sessions, though he cautioned that "we are not expecting a major spike in HDFC Bank at present; the stock may test investors' patience."
Yes Bank stock was trading 1.67% lower at ₹23.02 per share with a market capitalisation of ₹72,255.86 crore, having surged 7.12% in 2026 and around 25.79% in three years. According to technical analysis, Yes Bank is hovering close to its resistance zone of 24.75–27.75, from where sellers have been harsh on the stock. "Multiple instances of selling from this zone have triggered corrections of more than 20%. The overall structure of Yes Bank indicates that sellers are becoming active around the resistance zone. At the current level, we suggest avoiding the stock and waiting for a monthly close above 27.75," noted the expert. The nearby support for the stock is placed at 21.96, with a follow-through move below this level potentially leading to testing 21.02, followed by 20.79. ICICI Bank shares were trading 0.54% lower at ₹1,351.5 per share with an MCap of ₹9,70,829.47 crore, having touched a 52-week high of ₹1,480.00 on July 20, 2026, and 52-week low of ₹1,187.60 on April 2, 2026.
The market rally was broad-based with all sectoral indices except Nifty IT trading in the green, as reported by The Economic Times. Zomato and Blinkit parent Eternal saw shares jump around 3% to lead gains on Sensex, while Bajaj Finance shares rose nearly 2%. Other notable gainers included BEL, ITC and Axis Bank, which were up over 1% each. However, HDFC Bank, TCS, HCL Tech and Infosys shares fell nearly 1% each, bucking the overall positive trend. The Nifty Metal, Nifty Pharma, Nifty PSU Bank, Nifty Auto and few others rose around 1% each, providing crucial support to the broader market sentiment. The overall market breadth turned positive with NSE seeing 2,316 advances against 827 declines, indicating strong underlying demand across market segments.
Technical indicators suggest cautious market sentiment despite recent gains. As reported by The Economic Times, India VIX rose 2% to settle at 13.17, indicating increased market fear levels. The RSI remains in the deep oversold zone, though this doesn't automatically signal a recovery, with analysts suggesting a potential recovery may be around the corner. A decisive move above 23,300 might lead to a recovery towards 23,500 and higher, while downside may resume below 23,200. The ongoing consolidation around the 61.8% retracement zone (22,182–24,774) indicates a potential base formation at lower levels, though the index has not yet formed a Higher High–Higher Low structure, keeping broader sentiment cautious. Analysts remain cautious as elevated bond yields, FII selling, rupee weakness and geopolitical risks could fuel volatility.
