🔼 Bank Nifty Rebounds on Late Buying; Closes Above 55,500 Despite Global Headwinds

Mumbai, August 7, 2025 — The Indian banking sector witnessed a sharp intraday rebound on Thursday, as the Bank Nifty index staged a late-session rally, defying early volatility and global tariff concerns. The index surged from a low of 54,973.55 to close at 55,521.15, gaining 0.20% by end of trade.

This recovery came as investors brushed aside fears from fresh US tariff announcements and turned focus to value buying in heavyweight banking counters.

🔹 Key Banks Leading the Charge

The rally was largely driven by strong buying in frontline private and PSU banks:

• HDFC Bank advanced over 1.1%, offering strong support to the index.

• ICICI Bank and Axis Bank recovered from intraday losses to end flat-to-positive.

• State Bank of India (SBI) saw a modest uptick of 0.8%, reflecting investor confidence ahead of earnings.

• Kotak Mahindra Bank and IndusInd Bank also contributed to the index’s resilience, gaining 0.5–1% intraday.

🔍 What Fuelled the Reversal?

Market sentiment improved as domestic investors shrugged off Donald Trump’s 50% tariff threat, betting on India’s relative macro stability and strong banking fundamentals. Last-hour short covering added to the upside momentum, especially in large-cap banking names.

Analysts noted that technical buying around the support zone of 55,000 further accelerated gains.

📈 Technical Outlook

• Immediate resistance for Bank Nifty lies near 55,750–55,900, where selling pressure may resurface.

• Support remains firm at 54,800–55,000; a breach could trigger downside to 54,300.

• Momentum indicators hint at short-term bullishness, but with caution due to global triggers.

🗣️ Expert View

"Despite global jitters, domestic banking stocks are showing resilience. We expect rotational buying to continue, with key support at 55,000. A close above 55,900 may trigger a fresh leg of rally," said a market strategist at Axis Securities.