Mumbai: The Nifty Bank index traded lower on Wednesday as selling pressure across major banking stocks weighed on the sector. Heavyweights including State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda, Canara Bank and Kotak Mahindra Bank declined in early trade, while ICICI Bank was the only major lender to remain in positive territory.
The NSE Nifty Bank index fell 0.63 per cent to 57,836.75 after moving between an intraday high of 58,007.25 and a low of 57,706.75. Weakness in frontline banking stocks kept the benchmark banking index under pressure despite broader market stability.
Among the biggest losers, Bank of Baroda dropped 1.43 per cent, followed by Punjab National Bank, which declined 1.37 per cent. State Bank of India fell 1.33 per cent, Canara Bank slipped 1.30 per cent and Kotak Mahindra Bank lost 1.01 per cent.
ICICI Bank stood out by trading marginally higher, gaining 0.06 per cent.
Other private and public sector lenders also remained under pressure. HDFC Bank edged down 0.01 per cent, Axis Bank fell 0.80 per cent, IndusInd Bank lost 1.34 per cent, Yes Bank declined 1.20 per cent, IDFC First Bank slipped 0.68 per cent, Federal Bank fell 0.47 per cent, Union Bank of India dropped 1.95 per cent and AU Small Finance Bank declined 0.80 per cent.
Options data signals cautious sentiment
Derivatives data indicated growing caution among traders. Open interest in Bank Nifty futures increased 30.75 per cent since the previous expiry, while total open interest rose 47.28 per cent. Call open interest climbed 57.90 per cent, whereas put open interest increased 40.33 per cent.
The highest open interest on both the call and put sides was concentrated at the 58,000 strike price, suggesting that traders view it as an important resistance and support level.
Call additions were strongest at the 58,000 strike, while the biggest reduction in put open interest was recorded near the 57,500 strike.
Fresh short positions emerge
Futures data showed Bank Nifty in the liquidation category, with open interest in the current contract declining 0.68 per cent.
Market participants also built fresh short positions in several banking counters, including Bank Nifty, Union Bank of India, Bank of India, Bank of Baroda, Axis Bank, Yes Bank and RBL Bank. The positioning indicates that traders remain cautious about the near-term outlook for the banking sector amid continued selling pressure.
While ICICI Bank managed to stay in positive territory, broader weakness across both public and private sector banks kept the Bank Nifty index under pressure during the session.
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