Banking Stocks Rally as RBI Measures Boost Sentiment; HDFC Bank, BoB, Union Bank Gain Up to 3%

Banking stocks remained in focus on June 12, with the Nifty Bank index outperforming the broader market for the seventh time in the last 8 trading sessions. Investor sentiment improved after the Reserve Bank of India (RBI) introduced twin forex swap facilities aimed at attracting foreign capital, strengthening foreign exchange reserves, and supporting the rupee.

At around 10:25 AM, the Nifty Bank index was up 1.3%, compared to a 0.83% rise in the Nifty 50.

Banking Stocks Lead the Rally

Several banking stocks recorded strong gains during intraday trading:

• Union Bank of India gained up to 3%
• Bank of Baroda (BoB) rose nearly 3%
• HDFC Bank advanced around 2%
• Canara Bank gained over 2%
• Punjab National Bank climbed more than 2%
• Federal Bank also traded higher

Over the past week, many leading banking stocks have delivered gains of 3% to 6%.

Nifty Bank Outperforms Benchmark Indices

The banking sector has significantly outperformed the broader market in recent sessions.

• Nifty Bank gained nearly 3% in the last 1 week.
• During the same period, the Nifty 50 declined about 0.05%.
• Over the last 8 trading sessions, Nifty Bank has rallied 4.2%, while the Nifty 50 slipped 0.12%.

RBI's Forex Swap Facilities Lift Sentiment

RBI's recently announced forex swap facilities are likely to encourage foreign currency inflows and improve liquidity within the banking system.

Read More: Best PSU Stocks for June 2026: National Aluminium, Hindustan Copper and Others Based on 1-Year Returns!

Conclusion

Banking stocks extended their recent gains after the RBI's forex swap measures boosted confidence in the sector. Improved liquidity, potential foreign capital inflows, and strong business fundamentals have strengthened the outlook for banks. 

For daily market updates and regular stock market news in Hindi, stay tuned to Angel One's share market news in Hindi. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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.