Sensex Gains 939 Points as Banking Stocks Lead Rebound
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- Sensex surged 939 points (1.3%) to close at 75,502.85, breaking a three-session losing streak after both indices oscillated between gains and losses through the session before settling firmly higher
- HDFC Bank, RIL, ICICI Bank, SBI, M&M and Bajaj Finance powered the turnaround, with HDFC Bank gaining 2.7% to Rs 838.80, SBI rising 1.6% to Rs 1,063.90, and RIL — India's most valuable stock at Rs 18.9 lakh crore market cap — adding 1%
- Nifty Bank rose 1.2% on the day, though it has still slipped nearly 11% over the past month, with SBI, ICICI Bank and HDFC Bank each down 9-12% over that period
- Sunny Agrawal, Head of Retail Fundamental Desk at SBI Securities, attributed the move to short covering across rate-sensitive sectors and said bank valuations are now attractive
- Nilesh Jain of Centrum Finverse called it a technical rebound after a sharp correction pushed markets into oversold territory, with momentum indicators and oscillators in 'extremely oversold' zones
- India VIX cooled 4.60% to 21.60, but remains elevated; Jain said a drop below 18 is required for bulls to regain control, and warned that any pullback is likely to attract selling pressure
Why it matters: Banking heavyweights drove a sharp intraday turnaround that ended three straight sessions of losses, but the rally sits atop a brutal recent drawdown: Nifty Bank is still down nearly 11% over the past month, with SBI, ICICI Bank and HDFC Bank each off 9-12%. Both cited experts cautioned the broader structure remains weak and India VIX above 21 signals bulls haven't taken control.
