Markets close higher for 6th straight session; Bank Nifty hits record high on RBI boost 

Benchmark indices closed higher for the sixth consecutive session on Tuesday, with banking stocks leading the rally after the Reserve Bank of India announced favourable changes to liquidity norms. Despite weak global cues and overnight losses in US markets, the Sensex ended the day at 79,595.59, gaining 187.09 points or 0.24 per cent, while the Nifty 50 settled at 24,167.25, up by 41.70 points or 0.17 per cent.

Bank Nifty was the star performer, jumping sharply to hit a new all-time high of 55,961 before closing at 55,647.20, up by 342.70 points or 0.62 per cent. The rally in banking stocks followed RBI’s announcement to ease final Liquidity Coverage Ratio (LCR) norms, effective from April 2026.

“The Reserve Bank of India has set a lower buffer rate of 2.5 per cent for digitally linked deposits, down from the earlier proposed 5 per cent, with a new compliance deadline of April 1, 2026. It also reduced the ‘run-off’ factor on wholesale deposits from non-financial entities to 40 per cent from 100 per cent, easing pressure on banks’ liquidity,” noted Satish Chandra Aluri of Lemonn Markets Desk.

Among the top gainers on NSE, ITC led with a 2.36 per cent increase, closing at ₹432.85, followed by Hindustan Unilever at 2.21 per cent (₹2,403), HDFC Bank at 1.71 per cent (₹1,960), Jio Financial Services at 1.71 per cent (₹250.60), and Mahindra & Mahindra at 1.70 per cent (₹2,811.10).

On the losing side, IndusInd Bank tumbled 4.79 per cent to ₹788.55, followed by Power Grid at -2.11 per cent (₹313.25), Hero MotoCorp at -2.02 per cent (₹3,837.90), Infosys at -1.93 per cent (₹1,423), and Wipro at -1.87 per cent (₹234).

Broader market indices outperformed the benchmarks, with the Nifty Midcap 100 gaining 0.78 per cent to close at 54,397.15 and the Nifty Smallcap 100 rising by 0.73 per cent. Market breadth remained positive, with 2,477 advances against 1,504 declines on the BSE. The session saw 85 stocks hitting 52-week highs while 29 touched 52-week lows.

Sectoral performance was largely positive, with Realty surging over 2 per cent, while FMCG and Consumer Durables also registered notable gains. IT and Oil & Gas were the only sectors to close in the red. The India VIX, which gauges market volatility, declined by nearly 2 per cent to 15.23, indicating reduced nervousness among investors.

“The Nifty has now recovered a remarkable 2,500 points from its low of 21,743, registered on April 7th, 2025,” said Devarsh Vakil, Head of Prime Research at HDFC Securities. “Trading volumes on the NSE cash market were 3 per cent higher compared to the previous session, marking the highest turnover since April 7th, 2025.”

On the currency front, the rupee snapped its five-day winning streak, marginally depreciating by 0.06 paise against the US dollar to settle at 85.19. “Despite today’s muted movement and sideways range, the broader short-term view for the rupee remains positive, with any minor weakness likely to act as a support zone rather than a reversal,” said Jateen Trivedi, VP Research Analyst at LKP Securities.

In commodities, gold continued its rally, trading with high volatility after opening above ₹99,000 on MCX. “The rally continues to be fuelled by the Federal Reserve’s reluctance to cut interest rates immediately, despite growing pressure from former President Trump. This divergence has further enhanced gold’s appeal as a safe haven, pushing prices to fresh lifetime highs in both Comex and MCX,” Trivedi added.

From a technical perspective, experts suggest the market might consolidate at current levels after the recent run-up. “Going forward, the trend continues to look optimistic, at least as long as it does not fall decisively below 24,000. On the higher side, the short-term bullish outlook remains intact, with the possibility of a move towards 24,500,” said Rupak De, Senior Technical Analyst at LKP Securities.

Looking ahead, market participants should monitor key resistance and support levels. “Immediate resistance for the Nifty is seen at 24,545, which happens to be 61.8 per cent retracement of the entire fall seen from 26,277 (All Time High) to 21,743 (7th April 2025 Low). Support for the Nifty is seen near its previous swing high of 23,870,” concluded Vakil from HDFC Securities.

Published on April 22, 2025