Sensex Climbs Nearly 200 Points, Nifty Near 23,200 as PSU Banks Lead Rally

Markets Hold Firm as Banking Stocks Lead Gains; IT Shares Drag

Indian benchmark indices traded higher at midday on Tuesday, supported by strong buying in banking and financial stocks, although gains were capped by weakness in the IT sector and select heavyweight counters.

At around 12:17 pm, the Nifty 50 was up 69 points, or 0.30 per cent, at 23,192, while the BSE Sensex advanced 197 points, or 0.27 per cent, to 73,721.

The broader market continued to outperform the frontline indices, reflecting healthy risk appetite among investors. The Nifty Midcap 100 rose 1.16 per cent, the Smallcap 100 gained 1.04 per cent and the Microcap 250 index climbed 1.33 per cent.

Banking stocks emerged as the key drivers of the rally. The Nifty Bank index jumped 1.49 per cent to 54,868, while the PSU Bank index surged nearly 3 per cent, making it the top-performing sector of the day. Private banks also remained in demand, helping financial stocks extend gains across the board.

Among sectoral indices, auto, realty, chemicals and pharmaceutical stocks traded firmly in positive territory. In contrast, the IT index slipped 0.50 per cent despite supportive global technology cues, while media stocks also witnessed mild selling pressure.

Market volatility eased further during the session, with India VIX declining more than 5 per cent to 16.17, indicating reduced nervousness among traders ahead of the weekly derivatives expiry.

Within the Sensex pack, IndusInd Bank led the gainers with a rise of nearly 4 per cent. State Bank of India, Trent, Mahindra & Mahindra, ICICI Bank and Bajaj Finserv also recorded strong gains. On the other hand, Titan, NTPC, Power Grid, Infosys, Tech Mahindra and Bharti Airtel were among the notable laggards.

According to V K Vijayakumar, Chief Investment Strategist at Geojit Investments, improving sentiment in global technology stocks has supported Asian markets, particularly semiconductor-heavy markets such as South Korea and Taiwan.

He noted that lower crude oil prices remain supportive for equities, although geopolitical risks continue to linger. Vijayakumar also said a recent US court ruling against the Trump administration’s H-1B visa fee proposal could offer a modest positive for Indian IT companies.

However, he cautioned that markets could remain volatile due to sizeable foreign institutional investor (FII) short positions and weekly expiry-related trading activity.

Despite near-term uncertainty, Vijayakumar remains positive on banking stocks, arguing that valuations have become attractive following sustained foreign selling. He believes the sector offers favourable long-term opportunities for investors with a two-to-three-year investment horizon.