03 Jun , 2026 By : Debdeep Gupta
Bank Nifty fell more than 1 percent in early trade on Wednesday, with all 14 constituents trading in the red. Broad-based selling in banking stocks added to pressure on the benchmark indices amid a sharp sell-off in information technology shares.
The Nifty Bank index was trading at 53,161 around 10:40 am, down 554 points or 1.03 percent. The banking gauge had ended marginally higher in the previous session, gaining 72 points, but failed to hold on to those gains today as risk appetite weakened across the market.
The weakness in banking stocks came alongside a broader market decline. The Nifty 50 was down 1.05 percent at 23,237, while the Sensex fell 878 points. India VIX, often referred to as the market's fear gauge, rose nearly 6 percent, indicating increased investor caution.
Selling was widespread across the banking pack. IndusInd Bank emerged as the biggest loser on the index, falling nearly 2.8 percent. AU Small Finance Bank dropped 2.7 percent, while Yes Bank, State Bank of India and IDFC First Bank declined between 1.5 percent and 2.1 percent. Axis Bank, Union Bank of India, Bank of Baroda, Punjab National Bank and Canara Bank were also trading lower.
HDFC Bank, the index heavyweight, slipped marginally. SBI was also among the top losers on the Nifty 50 index.
The decline dragged both private and public sector banking gauges lower. The Nifty Private Bank index was down 0.8 percent, while the Nifty PSU Bank index fell about 1.1 percent.
Technical analysts had pointed to signs of improving sentiment after Tuesday's session. According to Choice Equity Broking, Bank Nifty formed a bullish candlestick pattern on June 2 after recovering sharply from intraday lows. The brokerage said the index witnessed sustained buying interest after opening with a gap-down and slipping below 53,200 during the session.
Choice broking said that the relative strength index (RSI) improved to 43.62, indicating gradual strengthening in momentum. The brokerage identified the 53,000-53,200 zone as immediate support, while resistance is seen in the 54,300-54,500 range. However, Wednesday's decline has pushed the index back towards that support zone.
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