Banking stocks rally 1.5% as PSU lenders lead; broader markets pause after six-day bull run

Market activity remained largely subdued after last week’s sharp rally, with investors turning cautious at higher levels. | Photo Credit: The Hindu Banking stocks outperformed the broader market trend on Monday, with the Nifty Bank surging 1.5%, even as benchmark indices ended marginally higher amid profit-booking following a six-session rally.The Nifty 50 settled at 25,044.65, up 0.23%, while the Sensex gained 0.13% to close at 81,106.58. Market activity remained largely subdued after last week’s sharp rally, with investors turning cautious at higher levels.“Indian equities are likely to consolidate in the near term as investors book profits after the sharp rally of over 10% in seven sessions,” said Siddhartha Khemka, head of research, wealth management, Motilal Oswal Financial Services.The Nifty 50 had recorded its strongest single-day gain of 2026 last Friday (November 6), reclaiming the psychologically important 25,000 mark. The rally helped narrow its year-to-date losses to 4.5%, from 15.17%.Banking stocks, however, remained firm. The Nifty Bank closed at 59,741, gaining 890.60 points, led by public-sector lenders. State Bank of India (SBI) was among the top performers, rising 2.56% to close at ₹1,042 on the NSE, its highest level in over two months. The rally lifted the Nifty PSU Bank index by 3.73%.“Bank Nifty on Monday’s session has formed a strong bullish candle which maintained a higher high and a higher low signalling extension of the positive momentum. The index started the session on a strong note and gained momentum as the session progressed to close at the high point of the day above the 59,700 levels,” said Pabitro Mukherjee, deputy vice-president, research, Bajaj Broking.Meanwhile, the rupee snapped its six-session winning streak to end largely unchanged at 93.90 against the dollar. The domestic currency had touched a six-month high of 93.69 during the session before surrendering its gains.Forex traders attributed the rupee’s inability to sustain its intraday gains to dollar purchases by some public-sector undertakings on behalf of oil marketing companies for hedging requirements.Indian financial markets will remain closed on Tuesday on account of Diwali Balipratipada. Published - November 09, 2026 07:27 pm IST