Sensex Jumps 650 Points, Nifty Reclaims 25,600 as Banking Stocks Power Late Rally

Sensex Jumps 650 Points, Nifty Reclaims 25,600 as Banking Stocks Power Late Rally​

Mumbai, February 16: Indian benchmark indices staged a strong comeback in the late afternoon session on Monday, snapping a two day losing streak as heavy buying in banking stocks lifted overall market sentiment.

The benchmark indices recovered sharply from early weakness, with financial counters leading the charge and helping markets close firmly in positive territory.

Sensex and Nifty Close Higher​

The 30 share BSE Sensex surged 650.39 points, or 0.79 per cent, to settle at 83,277.15.

The broader Nifty 50 climbed 211.65 points, or 0.83 per cent, to close at 25,682.75.

The late session momentum reversed losses seen over the previous two sessions, with banks and financial stocks providing the key support.

Technical Outlook: Key Support and Resistance Levels​

Market participants noted that the broader trend for Nifty remains constructive as long as the 25,500 to 25,400 support zone holds.

On the upside, immediate resistance is placed in the 25,700 to 25,800 band. A decisive breakout above this range could accelerate momentum towards the 25,900 to 26,000 zone.

The index ended the session near the lower end of the resistance range, keeping traders watchful for follow through moves in the coming sessions.

Banking Stocks Lead the Recovery​

Banking and financial stocks dominated the second half of trade, driving the recovery in benchmark indices.

Among Sensex constituents, Power Grid Corporation of India, HDFC Bank, Axis Bank, NTPC, ITC Limited, and Asian Paints were among the top gainers, rising by as much as 4.5 per cent.

On the downside, Tech Mahindra, Maruti Suzuki, Bajaj Finance, Mahindra & Mahindra, and Trent ended lower, slipping by up to 1.3 per cent.

Capital Market Stocks Slide After RBI Norm Revision​

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

Stocks such as BSE Limited, Angel One, and Multi Commodity Exchange of India declined by up to 10 per cent during the session.

The regulatory move weighed on sentiment in the capital markets space even as broader indices recovered.

Broader Markets and Sectoral Performance​

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

Sectorally, realty, PSU banks, private banks and pharma stocks witnessed strong buying interest. However, auto and metal stocks remained under pressure.

Despite global uncertainties and regulatory adjustments, domestic buying in banking counters helped benchmarks recover sharply from early losses and end Monday’s session on a firm note.

Rupee Trades Flat Amid Cautious Sentiment​

The rupee traded largely flat at 90.62 as cautious sentiment prevailed in currency markets.

The recovery in the secondary equity market after a weak opening helped stabilize the currency.

The overall trend in the rupee remains range bound, with immediate resistance seen near 90.25 and support around 90.90.