Bank Nifty Dips Below 60K Ahead of RBI MPC; IndusInd and Kotak Lead Decline | Stock Market Today

On February 5, the Bank Nifty slipped under the 60,000 mark, ending a three-day winning streak. Investors showed caution as the market awaited the Reserve Bank of India’s Monetary Policy Committee (MPC) decision.

By mid-afternoon, the index was hovering at 59,927.15, reflecting a decline of over 0.5% for the day. The previous three sessions had seen gains exceeding 3%, highlighting a pause in momentum ahead of the policy announcement.

Market Overview

Today’s session revealed a cautious tone across banking stocks, with private banks registering sharper declines while several public sector banks managed minor gains.

• IndusInd Bank: down nearly 2%
• Kotak Mahindra Bank: down around 2%
• Yes Bank: slipped close to 2%
• Axis Bank: dropped over 1% to trade at Rs 1,322.10
• ICICI Bank & Bank of Baroda: fell around 1% each
• HDFC Bank, IDFC First Bank, Federal Bank: minimal losses

Meanwhile, certain public sector lenders showed resilience:

• Punjab National Bank (PNB), State Bank of India (SBI), Canara Bank, Union Bank of India, AU Small Finance Bank: small positive movement

The trend reflects the market’s wait-and-watch approach ahead of the RBI MPC decision, with private banks more sensitive to policy expectations.

Company-Specific Highlights

Private Banks:

Private lenders bore the brunt of the decline. IndusInd, Kotak, and Yes Bank led the fall, showing vulnerability to pre-MPC volatility. Axis Bank slipped below Rs 1,323, while ICICI Bank and Bank of Baroda recorded mild losses.

Public Sector Banks:

Several government-owned banks fared better, with SBI, PNB, and Canara Bank posting modest gains. AU Small Finance Bank also stayed in positive territory, signaling selective buying interest.

Sector Trend:

The Bank Nifty’s downward movement indicates profit booking in private banks and measured buying in public banks. Investors appear to be positioning cautiously before the central bank’s announcement.

Key Takeaways

• Bank Nifty fell below 60,000 to 59,927.15, halting a three-day rally.
• Private banks led losses, with IndusInd, Kotak, and Yes Bank each down about 2%.
• Shares of Axis Bank, ICICI Bank, and Bank of Baroda dropped in the 1%–1.5% range.
• Public sector banks and some private lenders posted small gains, showing selective stability.
• The move comes ahead of RBI MPC rate announcement, reflecting cautious sentiment.

The market is now poised for the MPC outcome, which could influence banking stocks’ direction in the coming days.

Source: Moneycontrol