Bank Nifty Falls 1.4% For Second Day As Foreign Outflows Weigh

The Bank Nifty index declined 1.4% on April 23, marking its second consecutive session of losses, as continued foreign investor outflows and selling in public sector banks pressured financial stocks, according to Reuters.

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During afternoon trade, the index was at 56,400, reflecting broad-based weakness across banking stocks.

Foreign Outflows Continue In April

Foreign investors have net sold Indian equities worth $4.3 billion in April and $18.5 billion so far in 2026, according to Reuters. On April 22, both Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) were net sellers in the cash segment.

This simultaneous selling by institutional investors followed a recent rally in the equity markets.

PSU Banks Lead The Decline

Public sector banks recorded the sharpest losses within the index. Union Bank of India declined 6%, while Bank of Baroda fell 2.62% and Canara Bank dropped 2.6% during the session.

Union Bank of India reported a 6% year-on-year increase in net profit for the March quarter. However, its provisions rose 227% sequentially to ₹1,055 crore, according to its regulatory filing.

Rupee Weakness Adds To Pressure

The Indian rupee weakened past the ₹94 per U.S. dollar mark during the session, touching 94.1525, its lowest level since March 30, before recovering to 94.04, down 0.26%, according to Reuters.

The currency is losing value at the same time that crude oil prices are going up, which has made imports more expensive and changed the mood of the market as a whole.
RBI Measures On Forex Market

The Reserve Bank of India recently withdrew restrictions imposed on April 1 that had barred banks from offering non-deliverable forwards (NDFs) to clients. It also removed limits on corporates rebooking cancelled foreign exchange contracts, according to Reuters.

Impact Of Oil Prices On Banking Stocks

Higher crude oil prices have influenced financial markets by pushing up borrowing costs and bond yields. This has hurt banks' treasury gains, especially those that lend to the government.

The continued selling pressure across banking stocks and sustained foreign outflows contributed to the decline in the Bank Nifty index during April 23 trading.