Market Rally Alert: PSU Banks Lead Charge as SBI’s Stellar Q1 Sparks 6-Week Rebound

Bulls trample the bears—Indian markets roar back to life after six brutal weeks.

SBI flexes its balance sheet: PSU banks surge as the state-owned giant posts knockout Q1 numbers, proving even dinosaurs can learn new tricks.

Short sellers scrambling: The 'dead cat bounce' just grew claws—traders caught flat-footed as institutional money floods back in.

Bonus cynicism: Another quarter, another round of bankers high-fiving over spreadsheets while retail investors pray for crumbs.

PSU banks lead

Public sector banking stocks emerged as the clear winners, with the PSU Bank index surging over 2 per cent following State Bank of India’s better-than-expected Q1 results. “The market saw a relief rally post a 3-month low; a positive global cue and a gradual return of FIIs supported the sentiment. The PSU banks took the limelight amidst Q1 results from the banking major,” said Vinod Nair, Head of Research at Geojit Investments Limited.

Among the top gainers on Nifty 50, Adani Enterprises led the pack with a 4.23 per cent surge to ₹2,270.20, followed by Tata Motors, which gained 3.20 per cent to close at ₹654.00. Other notable performers included Eternal at ₹309.00 (up 2.69 per cent), Grasim at ₹2,763.00 (up 2.65 per cent), and Apollo Hospital at ₹7,248.00 (up 2.31 per cent).

On the downside, Hero MotoCorp declined 0.76 per cent to ₹4,565.00, while Bharat Electronics Limited dropped 0.23 per cent to ₹383.70. Bharti Airtel, Bajaj Finance, and Maruti Suzuki also ended in the red with marginal declines of 0.18 per cent, 0.08 per cent, and 0.06 per cent, respectively.

Market breadth

Market breadth remained robust, with 2,237 stocks advancing against 1,930 declines on the BSE. Meanwhile, 122 stocks reached 52-week highs, compared to 161 that hit 52-week lows. “Market breadth remained robust, as the advance/decline ratio tilted significantly in favour of the bulls. Out of the Nifty 500 stocks, 331 ended with gains, underscoring widespread optimism across sectors and market capitalisations,” noted Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities.

Sectoral performance was broadly positive, with the Nifty PSU Bank leading gains, followed by the realty and auto sectors. The Nifty Bank index ROSE 0.92 per cent to 55,510.75, while Nifty Midcap 100 gained 0.85 per cent to 56,479.00. Nifty Consumer Durables was the only sectoral index to end in negative territory.

Global cues

Global factors also contributed to the positive sentiment. “Investors are positively assessing the upcoming US-Russia Summit this week, which may possibly give way to a de-escalation in geopolitical tensions,” Nair added. Reports of potential US-Russia discussions on Ukraine peace initiatives helped stabilise market sentiment.

Foreign, MF flows

Foreign institutional investors provided additional support with inflows of ₹1,933 crore on Friday, while domestic mutual fund flows remained strong. “Mutual fund flows remain strong, with equity inflows and SIP contributions hitting record highs in July—signaling sustained retail investor confidence,” said Vaibhav Vidwani, Research Analyst at Bonanza.

Currency and gold

In the currency market, the rupee traded flat at 87.60 against the dollar. “Rupee traded flat at 87.60, holding steady as recent weakness in the dollar index, which stayed range-bound near 98.25 today, provided some support,” said Jateen Trivedi, VP Research Analyst at LKP Securities.

Gold prices faced pressure amid optimism for peace talks. “Gold prices weakened as news of the U.S. President’s scheduled meeting with Putin on August 15 to discuss the Russia–Ukraine war sent strong signals of a possible resolution, triggering profit booking,” Trivedi noted. MCX Gold declined by ₹1,200 to ₹1,00,550.

Outlook

Looking ahead, market participants will focus on key resistance levels and global developments. “For this pullback rally to sustain and extend further, a decisive follow-up MOVE is essential,” Shah cautioned. Technical analysts anticipate immediate resistance at the 24,700-24,740 levels for the Nifty, with support at 24,440-24,400. The upcoming US CPI data and potential progress in tariff negotiations between the US and India will be key factors to watch in the coming sessions.

Published on August 11, 2025