Bank Nifty posts biggest gain in 5 months, offsets Reliance losses

Catch-up rally in banking stocks on better-than-expected Q2; analysts expect the momentum to sustain

It isn’t a normal feat for the markets to end in the green on a day when Reliance Industries (RIL) — an index heavyweight — tumbles nearly 9 per cent. Despite a 524-point negative contribution by the stock, the benchmark Sensex managed to end with 143-points gain. It was the banking pack that helped the markets manage to offset the losses made by RIL. 

The widely-tracked Bank Nifty index, a barometer for banking stocks’ performance, gained 4.2 per cent — its biggest single-day gain since May 27. ICICI Bank (up 6.3 per cent), Axis Bank (6.1 per cent), SBI (3.6 per