Bank Nifty Plummets 3% Amid Broader Market Volatility: PSU Banks at Forefront of Losses - Analyst Insights on Buying Opportunities

Bank Nifty Index Crashes 3% Amid Rising Crude Prices and Foreign Outflows

On March 23, the Bank Nifty index plummeted 3.2% to 51,968.75, with PSU banks such as Union Bank of India, Canara Bank, and Punjab National Bank leading the losses, falling 4.3%-4.7%.

HDFC Bank, India's largest private lender and the heaviest-weighted stock in the benchmarks, dropped 2.5% following a 7.4% decline in two sessions due to the abrupt resignation of part-time chairman Atanu Chakraborty.

State Bank of India shares fell 3% after the lender received a Rs 6,337-crore tax demand from the Income Tax Department for the assessment year 2024.

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Elevated crude oil prices and relentless foreign outflows put pressure on the rupee, which weakened to a record low on Monday, surpassing its previous low hit on Friday.

Foreign portfolio investors have sold $9.57 billion worth of Indian equities so far in March, on track for the heaviest monthly outflows since October 2024.

Market analysts project the Bank Nifty to trade between 52,000 and 55,500 in the coming week, with a critical inflection point at 54,000. A sustained close above this level could signal strengthening bullish momentum and potentially trigger a recovery.