Stock market today: Why is Bank Nifty rising despite a dip in Sensex, Nifty 50? EXPLAINED with five crucial reasons

Stock market today: Despite dips in the Indian frontline indices—BSE Sensex and NSE Nifty 50—the Nifty Bank index extended the uptrend for the third straight session. The Bank Nifty today opened upside at 52,690 and touched an intraday high of 52,821, logging an intraday gain of 442 points or over 1.80%. While climbing to today's peak, the Bank Nifty index logged around 2,600 points or over 5% rise in the last three straight sessions.

Why is Bank Nifty rising today?

According to stock market experts, this divergent trend in the key benchmark indices of the Indian stock market can be attributed to these five major reasons: rate cut buzz, strong Q4 results 2025, better-than-expected CPI inflation in India during March 2025, strong business updates by Indian banks, and RBI's shift from ‘neutral’ to ‘accommodative’.

Top 5 reasons for Bank Nifty defying Sensex, Nifty 50 trends

1] Rate cut buzz: “Frontline banking stocks have been on an uptrend after the 25 BPS repo rate cut, announced by the Reserve Bank of India (RBI) in its recently held Monetary Policy Committee (MPC) meeting. This has triggered interest rate cut buzz, fueling speculations for higher borrowing business volume for the Indian banks. Hence, the market expects better quarterly earnings for the banking majors than other listed companies,” said Avinash Gorakshkar, Head of Research at Profitmart Securities.

2] Q4 results 2025: “Due to Trump's tariffs, other than banking companies are under huge pressure. Hence, they are expected to take the provisioning route to counter the challenge posed by Trump's tariffs. So, banking stocks are under the radar of Dalal Street bulls as they are expected to deliver strong Q4 results 2025. Meanwhile, balance sheets of other than banking companies may see the Trump's tariff heat,” said Sandeep Pandey, Founder of Basav Capital.

3] Better-than-expected CPI inflation in India: “India’s headline CPI inflation eased sharply to 3.34% YoY in March 2025, its lowest reading since August 2019, down from 3.61% in February and a marked retreat from the recent high of 6.21% in October 2024. The print is well within the RBI’s 2–6% tolerance band and comfortably under its 4% medium-term target. It provides material policy space that has already yielded 50bps of repo rate cuts since February,” said Arsh Mogre, Economist at PL Capital.

4] RBI's shift from ‘neutral’ to ‘accommodative’: “In recently concluded RBI MPC meeting, the Indian Central Bank shifted its stance from ‘neutral’ to ‘accommodative.’ This signals RBI's commitment to supporting growth to fuel the national economy, which means higher industrial income and better quarterly numbers for banks as industries depend heavily on banks for credit line support,” said Avinash Gorakshkar.

5] Strong Q4 business updates: “Banks have delivered strong Q4FY25 updates, which has triggered strong Q4 results 2025 by the Indian banks. Most of the banks have reported improvement in CASA, which means their cost of funding has reduced in the recently ended March 2025 quarter. Several banks like Yes Bank, IDFC First Bank, etc., reported improvement in loans and deposits, which is also a good sign from a bank perspective,” said Anshul Jain, Head of Research at Lakshmishree Investment and Securities.

Stock market outlook

Abshul Jain added the Bank Nifty is signalling bullish intent. If the index sustains above 52,000 without filling the gap, it will confirm a bullish breakaway gap pattern. The next logical upside is at the next weekly swing high of 53,888. For momentum to continue, BankNifty must hold above 52,000; any dip towards 51,750 will act as a buying opportunity. The structure remains positive unless the gap gets filled.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.