Bank Nifty Marginally Lower on Feb 2, 2026 as Private Bank Gains Offset PSU Weakness

The Bank Nifty index has shown a measured performance in recent sessions, reflecting a balance between stock-specific support and broader market pressures. 

While Indian equities attempted a recovery after sharp Budget-related declines, banking stocks remained mixed as investors reacted to changes in futures and options taxation and reassessed the outlook for the financial sector.

Bank Nifty Performance Overview

Bank Nifty was trading at 58,375.95, marginally lower by 41.25 points or 0.07%, indicating a largely stable trend despite volatility in the broader market. 

The index’s movement suggests that gains in a few heavyweight private banks helped counter losses in select public sector lenders.

Stocks Supporting the Index

Private sector banks provided upward support to Bank Nifty during the session.

ICICI Bank was the largest positive contributor, with a contribution of 947.70 points, trading at a CMP of ₹1,342.50.

Kotak Mahindra Bank also added strength to the index, contributing 230.24 points, with its stock price at ₹408.70.

Stocks Weighing on the Index

On the downside, public sector banks exerted pressure on Bank Nifty.

State Bank of India (SBI) was the biggest drag, contributing –913.61 points, while trading at ₹1,012.00.

Bank of Baroda further weighed on the index, with a negative contribution of –404.52 points at a CMP of ₹274.80.

Broader Market Context

Indian equity markets opened slightly higher at the start of the week, attempting to recover from losses seen during a special weekend trading session. 

The earlier decline followed the Union Budget 2026 announcement, where an increase in securities transaction tax on futures and options led to a sharp sell-off.

In the special session, the BSE Sensex fell 1,546.84 points or 1.88% to close at 80,722.94, while the Nifty 50 declined 495.20 points or 1.96% to settle at 24,825.45.

Investor sentiment remained cautious as the Budget did not fully meet expectations around measures to attract foreign capital.

Read More: Union Budget 2026 Highlights: Your 5-Minute Guide to Fiscal, Tax and Sectoral Measures.

Conclusion

Bank Nifty’s recent performance reflects a steady balance between private bank resilience and pressure from PSU lenders amid Budget-driven market adjustments. As investors continue to evaluate policy changes and sector-specific fundamentals, the index may remain range-bound in the near term, with stock-specific developments likely to guide movements rather than broad directional trends.

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.

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