More Stories

Informist, Friday, Mar. 6, 2026

By Kabir Sharma

MUMBAI – The Nifty Bank index is expected to continue its downfall next week as market sentiment has dampened due to the West Asia conflict and regulatory restrictions on sale of insurance products by banks, analysts said.

"Banking and financial stocks were among the worst hit after regulatory concerns weighed on sentiment," Siddhartha Khemka - head of research, wealth management, Motilal Oswal Financial Services Ltd., said. "The Nifty Private Bank index declined 2.3%, Nifty Financial Services fell 2.1%, and Nifty PSU Bank dropped 2% after the RBI (Reserve Bank of India) proposed tighter rules around the sale of insurance products alongside bank loans, which could impact fee income for banks and insurers."

The Nifty Bank Friday settled at 57783.25 points, down 4.5% on week. This compared with a 2.9% fall in the Nifty 50 this week.

Under the proposed rules, banks will no longer be able to automatically attach insurance policies to loans. Customers will have to explicitly agree to buy the insurance product.

The ongoing conflict  West Asia will also weigh on the market, analysts said. "Investors are moving towards traditional safe-haven assets and adopting a cautious stance, awaiting greater clarity. We expect that reassurance over control of the Strait of Hormuz will help stabilize market sentiment," Vinod Nair, Head of research, Geojit Investments Ltd., said.

In its technical view, Bajaj Broking said, "Index sustaining below 58,000 levels will open further downside towards 57,000-56,600 levels in the coming weeks being the confluence of the 52 weeks EMA and the key retracement of the previous up move. On the higher side 59,000 is likely to act as immediate resistance, sustaining below the same will keep the bias down."

TOP HEADLINES: 

* Fino Payments Bank expects no financial impact from GST probe

* CCI OKs Central Bk buying additional stake in Generali Central insurance cos

* Fitch upgrades viability rating of SBI, Canara Bank, Bank of Maharashtra

* Analyst Concall: Fino Payments Bk says maintaining buffers post MD's arrest

* Fino Payments Bank says GST probe involves program managers, not bank itself

* Sitharaman says will look into Fino Payments Bank MD's arrest in GST probe

* After MD arrest, Fino Payments Bk says GST probe linked to program managers

* ICICI Bank to buy up to 2% additional stake in arm ICICI Prudential Life

* Data Alert: Bk loans up 13.6% YoY in fortnight to Feb 15, deposits up 11.2%

* Rising gold exchange-traded pdt demand not to hit bars, coins - Metals Focus

* Bk credit to svcs sector up 15.5% YoY as of Jan 31, personal loans up 14.9%

* Weighted average rate on new bank loans up 39 bps on month at 8.67% Jan

* S&P assigns 'BBB' long-term rating with 'stable' outlook to Bank of Baroda

* Bloomberg: Canada's Fairfax Fincl frontrunner in govt's IDBI Bank divestment

Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:

End

US$1 = INR 91.74

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Avishek Dutta

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.