Nifty Bank closed 0.36% higher; Axis Bank (+1.04%) and HDFC Bank (+0.83%) were top gainers.
Sensex fell 417 points (0.55%) and Nifty 50 down 41 points (0.18%) despite banking rally.
RBI’s FCNR(B) Inflows Fuel Banking Rally The Reserve Bank of India’s overseas capital‑raising window closed on 31 August, bringing in a record $127.23 bn of FCNR(B) deposits and an additional $9.15 bn from external borrowings. This $136.38 bn influx far surpassed earlier forecasts, tightening bank liquidity and strengthening India’s external buffers. The inflow also helped the rupee appreciate against the dollar during the session.
Sectoral Highlights and Stock Movers Nifty Bank finished 0.36% higher at 57,380.60, with the Nifty Private Bank and Nifty PSU Bank indices up 0.51% and 0.48% respectively. Axis Bank led the rally, rising 1.04% to Rs 1,267, followed by HDFC Bank at 0.83% (Rs 706.65). IDFC First Bank topped the Nifty Bank list, up 2.83% to Rs 87.50, while IndusInd Bank added 2.74% to Rs 1,004.80. Bank of Maharashtra surged 5.27% to Rs 86.33, marking the biggest gain on the BSE Midcap index.
Market Reaction and VIX Despite the banking sector’s gains, the broader market reversed sharply: the Sensex fell 417 points (0.55%) to 76,153, and the Nifty 50 dipped 41 points (0.18%) to 23,873. The India VIX eased 2.24% to 11.33, reflecting reduced volatility. Nifty Realty led sectoral performance with a 2.58% rise, while Nifty IT and FMCG recorded modest declines of 0.85% and 0.62% respectively. The session highlighted a disconnect between banking resilience and overall market sentiment.
