Indian banking stocks led a market rebound on May 22, helping the BSE Sensex climb 232 points to close at 75,415 and pushing the Nifty 50 above 23,700 amid positive global cues.
Axis Bank rose 2.68 percent to 1,287 rupees and ICICI Bank gained 1.96 percent to 1,267.20 rupees, among the top contributors to the Sensex advance. HDFC Bank, Kotak Mahindra Bank and Shriram Finance also posted solid gains. The Nifty Bank index surged about 615 points during the session.
Reports that the Reserve Bank of India is unlikely to raise interest rates aggressively to defend the rupee boosted sentiment toward lenders, who are sensitive to policy rate changes. The rupee recovered from recent lows, and Brent crude traded below 105 dollars per barrel as investors tracked U.S.-Iran diplomatic developments.
Global markets provided additional support, with the Dow Jones Industrial Average having closed at a record high in the prior session. Despite the rally, foreign institutional investors sold 1,891 crore rupees of Indian equities on May 21, continuing a pattern of outflows that has pressured markets through much of the West Asia conflict period.
Trent rose 3.19 percent and Shriram Finance gained 2.98 percent alongside the banking advance. AU Small Finance Bank was among the top percentage gainers on the Nifty Bank index. Asian and European markets also traded higher, reflecting broader global risk appetite on May 22.
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Sources:
https://tradingeconomics.com/india/stock-market