Sensex, Nifty Stage Sharp Comeback On Bank Buying After Two-Day Slide

Indian equity benchmarks staged a sharp comeback on Monday, snapping a two-day losing streak as strong buying in banking and financial stocks lifted overall sentiment in the latter half of the session.

The 30-share Sensex rallied 650.39 points, or 0.79 per cent, to settle at 83,277.15. The broader NSE Nifty climbed 211.65 points, or 0.83 per cent, to close at 25,682.75, recovering decisively after a weak start.

Banking Stocks Power Late Recovery

The turnaround was led by robust gains in banking and financial counters. Heavyweight names provided stability to the indices and helped drive the late-session rally.

Among Sensex constituents, Power Grid, HDFC Bank, Axis Bank, NTPC, ITC and Asian Paints were among the top performers, rising as much as 4.5 per cent during the day.

Analysts noted that domestic buying interest in financial stocks helped counterbalance lingering global concerns and regulatory headwinds.

Capital Market Stocks Under Pressure After RBI Move

While benchmark indices ended firmly in positive territory, capital market-linked stocks faced sharp selling after the Reserve Bank of India revised norms related to capital market exposure.

Shares of BSE, Angel One and MCX declined up to 10 per cent during the session as investors reacted to the regulatory changes.

Broader Markets Show Measured Gains

In the wider market, the Nifty MidCap index advanced 0.48 per cent, while the Nifty SmallCap index edged up 0.11 per cent, indicating selective participation beyond large-cap stocks.

Sectorally, realty, PSU banks, private banks and pharma counters attracted strong buying interest. In contrast, auto and metal stocks continued to trade under pressure.

Commenting on the Nifty’s technical setup, market experts said the broader structure remains constructive as long as the 25,500-25,400 support band holds.

“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.

Rupee Trades Steady Amid Volatility

In the currency market, the rupee traded largely flat near 90.62 as participants remained cautious. However, recovery in the secondary equity market after a soft opening helped stabilise the domestic unit.

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

Despite global uncertainties and regulatory developments, firm domestic institutional participation in banking stocks ensured that markets ended the session on a strong note, reversing earlier losses and restoring short-term confidence.