The Nifty Bank index, which tracks the performance of the most liquid and large-cap Indian banking stocks, slipped 126.15 points, or 0.23%, to close at 55,401.20 in Monday's session.
While the Sensex erased early gains to trade flat and the Nifty 50 remained above 24,700, concerns surrounding global geopolitical developments weighed on investor confidence.
Rising tensions between Israel and Iran have intensified, with both sides exchanging attacks in recent days. Israel struck Tehran over the weekend, prompting retaliatory drone and missile offensives from Iran.
In a fresh development early Monday, Israel reportedly launched surface-to-surface missiles targeting central Iran. These hostilities have sparked fears of potential disruptions at the Strait of Hormuz — a vital chokepoint through which nearly 20% of the world’s daily oil supply flows.
The tension-fuelled uncertainty pushed Brent crude futures up by 0.82% to $74.84 a barrel in early trade Monday, following a sharp 7% gain last Friday.
Within the Nifty Bank index:
The divergence in bank performance reflected a selective interest from investors, with larger private banks faring relatively better compared to PSU banks, which were more sensitive to macroeconomic concerns.
The Bank Nifty may continue to see choppy trade in the near term as investors assess the evolving geopolitical situation, the trajectory of global crude prices, and their potential impact on inflation and interest rates. With the banking sector playing a pivotal role in market stability, its performance will be key to the overall trend in Indian equities.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jun 16, 2025, 10:14 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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