Nifty Bank Sees Highest Single-Day Range of Over 1,000 Points on Budget Day 2025

The Nifty Bank Index, comprising the most liquid and large Indian banking stocks, is a crucial benchmark for assessing the capital market performance of Indian banks. The index consists of a maximum of 12 companies listed on the National Stock Exchange (NSE).

On Budget Day 2025, the Nifty Bank experienced exceptional volatility, trading within a range exceeding 1,000 points, calculated as the difference between the highest and lowest levels of the day. This marks the widest single-day range since January 21, 2025, reflecting the heightened market activity on this pivotal economic announcement day.

Market Snapshot: Nifty Bank Movement on Budget Day

As of 3:12 PM on February 1, 2025, the Nifty Bank was marginally lower by 0.11%. Among the 12 constituents, only four stocks were in the green, while the remaining eight traded in the red.

• Top contributors: Axis Bank and ICICI Bank led the gains, helping cushion the index from a steeper decline.
• Major laggards: HDFC Bank and SBI exerted the most downward pressure, dragging the index lower.

Yearly Performance and Valuation Metrics

The Nifty Bank ended CY 2024 with a 5.32% gain. However, in CY 2025 so far (as of February 1, 2025), the index has seen a decline of 2.69%, reflecting a cautious start to the year.

A crucial valuation metric for banking stocks, the price-to-book (P/B) ratio, stood at 2.2 as of January 31, 2025. This level is near the lower end of its 1, 3, and 6-month range, as well as close to the bottom of its 1 and 2-year range, suggesting a relatively moderate valuation environment for banking stocks.

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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