Nifty Bank Suffers Losses Amid Market Corrections; Major Players Like ICICI, HDFC, and SBI Face Challenges

On January 13, 2025, the Nifty Bank index experienced a downturn as the market underwent a correction. By 10:33 AM IST, the Nifty Bank was down by 0.44%, trailing slightly behind the Nifty 50 index which had seen a 0.42% decrease.

Performance of Major Banks

Out of the 12 banks included in the Nifty Bank sector, only Axis Bank, IDFC First Bank, and IndusInd Bank managed to remain in positive territory. Notably, IndusInd Bank’s shares rose by nearly 3% after the bank published its shareholding data for the December 2024 quarter. This report indicated a drop in foreign holdings to 46.63%, compared to 59.62% in the previous quarter, reflecting a continuing trend over the last five quarters.

Conversely, larger banks such as ICICI Bank, HDFC Bank, and State Bank of India suffered declines, contributing significantly to the overall decrease in the sector.

Broader Market Trends

The general market followed suit with a downward trend, as evidenced by the NSE Nifty 50 and BSE Sensex opening markedly lower, down by 1.01% and 0.97% respectively. However, by mid-morning, there was a slight recovery, with the Nifty 50 trading at a 0.73% decrease at 23,259.70, while the Sensex stood at 76,894.21.

Future Outlook

The short-term outlook for the Nifty Bank remains pessimistic, with analysts suggesting potential support levels at 48,400, 47,900, and 47,500. A crucial resistance level is anticipated at 48,800, with additional resistance zones at 49,400 and 50,000. Hardik Matalia, a derivatives analyst at Choice Broking, noted that a significant pullback could occur if the Bank Nifty surpasses the 49,500 mark decisively.

Shrikant Chouhan, Head of Equity Research at Kotak Securities, echoed these sentiments, stating that the short-term prospects are weak, and a rebound might only manifest following a decisive break above the 49,500 level.

Nifty, Bank, Market