27/02/25, Bank Index Extended Loss

Nifty Bank index remained under pressure throughout Friday's session and extended its losses in the afternoon, tracking broader market weakness. As of about 1:30 pm, the banking index was down 0.8 percent at 60,717. The benchmark Indian equity indices too slipped sharply, with the Sensex down over 600 points and the Nifty lower by 0.8 percent.

The banking index stayed in the red since the open and weakened further as selling intensified in heavyweight private banks. ICICI Bank stock was the biggest drag, falling 1.6 percent, followed by declines in HDFC bank (down 1.1 percent) and Axis Bank (down 0.7 percent). Kotak Mahindra Bank also traded over 1.3 percent lower, adding to the pressure on the index.

Broader participation within banking stocks was largely negative. PSU lenders such as. State Bank of India, Bank of Baroda, Punjab National Bank and Canara Bank were also trading lower, though losses were relatively contained compared with private-sector peers.

Gains were limited and stock-specific. Union Bank of India rose 1.6 percent on healthy volumes, while IDFC First Bank gained about 1 percent. Federal Bank also traded marginally higher. However, these advances were insufficient to offset declines in heavyweight stocks.

Volatility indicators reflected rising caution. India VIX climbed nearly 4 percent, suggesting elevated near-term uncertainty as markets digested selling pressure across sectors.

From a technical perspective, Ponmudi R, CEO of Enrich Money, said in his morning outlook that Bank Nifty's immediate support lies in the 60,900-60,600 zone, while resistance remains in the 61,400-61,500 band. He added that while the broader structure remains constructive as long as key supports hold, momentum has been measured rather than aggressive.

Separately, ICICIDirect noted that Bank Nifty continues to show relative strength versus the benchmark indices, being closer to its record highs than the Nifty. However, the brokerage cautioned that failure to secure a decisive close above the 61,800 area could result in continued consolidation near elevated levels.