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Informist, Friday, Jun. 5, 2026

NEW DELHI – The Nifty Bank index is expected to remain range-bound next week amid mixed domestic and global cues, analysts said. While the Reserve Bank of India's steps to attract foreign capital and the government's tax relief for foreign investors in government securities may support sentiment, near-term market moves are likely to hinge on bottom-up stock picks and sector-specific trends, they said.

"RBI kept the repo rate unchanged at 5.25% for a third consecutive meeting," Siddhartha Khemka, head of research, wealth management, Motilal Oswal Financial Services Ltd., said in a note. "It has also announced measures to attract foreign capital and support the rupee, including easing investment norms for NRIs (non-resident Indians) and OCIs (overseas citizens of India), incentivising FCNR(B)(foreign currency non-resident (Bank)) deposits and facilitating foreign currency inflows."

The Nifty Bank index Friday settled at 54496.25 points, up 0.5% on week. In comparison, the benchmark Nifty 50 fell 0.8% over the week. Most of the shares in the Nifty Bank ended higher this week. Kotak Mahindra Bank and Bank of Baroda were the worst hit, falling 1.8% on week. Federal Bank was the top gainer, up over 5%.

The index formed a high wave candlestick pattern with a long lower shadow indicating buying demand at lower levels from the key support area of 52500-53000 points, according to Bajaj Broking Research. The sectoral index has been consolidating in the broad range of 52700-55600 points in the past three weeks, the broking firm said. "We expect the index to extend the same and only a breakout or breakdown will signal the next directional momentum in the index," Bajaj Broking said in a note.

Friday, the RBI imposed a penalty of INR 4.18 million on Canara Bank for non-compliance with know-your-customer guidelines. The banking regulator said Canara Bank had failed to upload know-your-customer records of certain customers on the Central KYC Records Registry within the prescribed timeline.

Shares of ICICI Bank will remain on investors' watch list. The Securities and Exchange Board of India Monday issued a warning letter to the bank for permitting a foreign portfolio investor to repatriate funds before completion of the committed retention period under the voluntary retention route. The warning was issued because the bank violated the RBI's master direction on non-resident investment in debt instruments.

Next week, developments in West Asia, energy price movements, and foreign institutional investor flows are likely to remain key drivers of market sentiment.

TOP HEADLINES
* ICICI Bank gets warning from SEBI for violating FPI regulations
* Loan growth slower, no asset quality hit yet from W Asia war: Citi executives
* Central Bank of India appoints Vivek Kumar as CFO for 3 years
* Q1 loan growth strong, no change in loan mix post West Asia war - SBI Setty
* Bks must adapt to risks whose timing difficult to predict - RBI Swaminathan
* SBI Setty says India needs INR-200-tln invest by 2030 in infra, other sectors
* Canara Bank to raise up to INR 85 bln via tier I, tier II bonds in FY27
* Govt appoints Brajesh Kumar Singh as Canara Bank's MD, CEO
* Suryoday Small Finance Bank's board to meet Jun 25 to mull raising funds
* Axis Bank invests INR 3.81 bln in Axis Max Life Insurance Co

* Kotak Mahindra Bank to absorb lending arm's ops worth INR 106 bln during Q2
* Fin min asks PSU banks to be prepared, adaptable in view of West Asia war

* Bank loans to services sector up 18.6% as of Apr 30, personal loans up 16%
* Weighted average rate on new bank loans rises 10 bps MoM to 8.50% in April
* SC notice to police on plea against HC quashing FIR against HDFC Bank CEO

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

End

US$1 = INR 94.94

Reported by Vaishali Tyagi

Edited by Rajeev Pai

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