Nifty Bank Rebounds 1.4% from Day’s Low as Trump Tariff Fears Ease; ICICI, Kotak Lead Surge | Markets News
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The Nifty Bank index staged a strong recovery from intraday lows on Wednesday, as markets shook off initial jitters
Bank Nifty Shares
Nifty Bank Rebounds Sharply: The Nifty Bank index staged a strong recovery from intraday lows on Wednesday, as markets shook off initial jitters from US President Donald Trump’s tariff announcement and rebounded across sectors.
Earlier in the session, benchmark indices opened deep in the red after Trump proposed a 25% tariff and an additional penalty on India. However, sentiment improved through the day, driving a sharp reversal in the broader market.
The Nifty Bank index, which had fallen over 600 points in early trade to hit a low of 55,547, rallied more than 750 points (1.4%) from that level to swing into positive territory. As of latest trade, the index was up nearly 150 points (0.27%) at 56,300.
Private Banks Lead the Recovery
The rebound was led by private sector lenders. Kotak Mahindra Bank and ICICI Bank each rose nearly 1%, while Axis Bank and Bank of Baroda were up over 0.5%. HDFC Bank, State Bank of India, AU Small Finance Bank, and IDFC First Bank were trading with marginal gains.
On the flip side, Punjab National Bank (PNB) shares declined 2% after the company reported weak first-quarter results. Federal Bank, IndusInd Bank, and Canara Bank also traded slightly in the red.
Technical Outlook
Analysts noted that the index has crossed key resistance levels, indicating potential for further upside. “A sustained move above 56,275 could lead to a rally toward 57,000 and 57,630,” said Hardik Matalia, Derivative Analyst – Research at Choice Equity Broking.
“The broader price structure continues to reflect a bullish bias, making dips a buying opportunity for positional traders,” he added.
According to a technical report from Motilal Oswal Wealth Management, Bank Nifty now has immediate support at 55,750 and 55,500. Resistance is seen at 56,350 and 56,500. “It must hold above the 56,000 zone for a move towards 56,350–56,500. A fall below that could drag it back towards 55,750–55,500,” the report said.
On July 30, President Trump announced 25% tariffs and penalties on India for purchasing Russian military hardware and oil. While he acknowledged India as a “friend” on Truth Social, he criticized the country’s tariff regime, calling it among the “highest in the world.”
Despite the tough rhetoric, investors believe this may be a negotiating tactic ahead of formal trade talks scheduled for mid-August. “Seasoned investors know markets rarely reprice on the headline alone. Beneath the volatility lies a set of divergent sectoral narratives that deserve attention,” said Bhavik Joshi, Business Head at INVasset PMS.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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