Nifty Bank Declines as Major Banks Struggle Amid Market Correction

The recent market correction has had a significant impact on the Nifty Bank index, causing it to slip into the red. As stocks from many major banks plummeted, only a few managed to maintain positive performance. Specifically, out of the 12 banks listed in the Nifty Bank sector, only ICICI Bank, IDFC First Bank, and IndusInd Bank were able to stay in the green during this downturn.

As of 10:33 AM on January 13, 2025, the Nifty Bank had declined by 0.44%, slightly underperforming the Nifty 50 index which was down by 0.42%. The Nifty Bank opened at 48,264 points but saw its lowest drop of the day, hitting 48,116 points, a level not seen since June 2024.

IndusInd Bank Shows Resilience

Among the banks, IndusInd Bank stood out with a nearly 3% increase in its stock price. The bank's recent release of its shareholding data for the quarter ending December 2024 revealed a decrease in foreign ownership, falling to 46.63%, down from 59.62% in the previous quarter. This marked a continued trend of declining foreign investment over the past five quarters.

However, the overall performance of other major banks was less favorable. Stocks like HDFC Bank and State Bank of India (SBI) faced declines, contributing to the overall downturn of the banking sector.

Broader Market Downturn

The market correction was not limited to banks alone. The broader indices also faced significant downtrends, with the NSE Nifty 50 and BSE Sensex opening markedly lower, down 1.01% and 0.97% respectively. As the morning progressed, there was some slight recovery, with the Nifty 50 trading at 23,259.70, down 0.73%, and the Sensex at 76,894.21.

The short-term outlook for the Bank Nifty appears weak, with technical analysts noting possible support levels at 48,400, 47,900, and 47,500. The resistance level is projected at 48,800, with further resistance anticipated at 49,400 and 50,000 points. Derivative analyst Hardik Matalia from Choice Broking stated that a potential pullback may only become favorable if the Bank Nifty were to decisively cross the 49,500 mark.

In conclusion, while a few banks exhibited resilience during this correction, the majority struggled as broader market trends weighed down the banking sector. Investors will be keeping a close watch on future developments and resistance levels, as these will play crucial roles in the direction of the markets moving forward.

Nifty, Bank, Market