Sector Surge: PSU Banks And Metals Lead Midday Gains On September 23

Indian equity markets witnessed a sectoral upswing on September 23, 2025, with the Nifty PSU Bank and Nifty Metal indices outperforming broader benchmarks as of 1:48 p.m. IST. The Nifty PSU Bank index rose 1.2 percent, while the Nifty Metal index climbed 1.01 percent, reflecting renewed investor interest in cyclical and rate-sensitive sectors. The gains come amid a mixed global backdrop and cautious optimism around domestic macro indicators.

 

The rally in public sector banks was driven by strong institutional flows and expectations of stable credit growth, while metal stocks benefited from firm global commodity prices and signs of demand recovery in China and Southeast Asia.

 

Key Highlights From Midday Trade

 

- Nifty PSU Bank index up 1.2 percent, led by gains in SBI, Bank of Baroda, and Canara Bank  

- Nifty Metal index rises 1.01 percent, supported by Hindalco, JSW Steel, and Tata Steel  

- Broader indices remain range-bound, with Nifty 50 hovering near 25,280  

- Rupee trades marginally weaker at 88.14 against the US dollar  

- Market sentiment buoyed by benign inflation outlook and steady bond yields  

 

PSU Bank Index: Momentum And Drivers

 

The Nifty PSU Bank index extended its recent uptrend, supported by:

 

- Strong quarterly earnings guidance from leading public sector banks  

- Improved asset quality and declining gross non-performing asset ratios  

- Anticipation of stable interest rate environment aiding net interest margins  

- Foreign portfolio inflows into banking ETFs and index-linked funds  

- Technical breakout above key resistance levels, triggering momentum buying  

 

Stocks contributing to the rally include:

 

- State Bank of India up 1.2 percent  

- Bank of Baroda up 1.5 percent  

- Canara Bank up 1.3 percent  

- Punjab National Bank and Union Bank also posted modest gains  

 

The index has gained over 11 percent in the past month and nearly 23 percent over the last six months, reflecting sustained investor confidence in the sector’s turnaround story.

 

Metal Index: Commodity Tailwinds And Export Optimism

 

The Nifty Metal index rose 1.01 percent, tracking gains in global base metal prices and improved export sentiment. Key factors driving the move include:

 

- Recovery in Chinese industrial activity and infrastructure spending  

- Stable demand outlook from Europe and Southeast Asia  

- Decline in input costs such as coking coal and energy  

- Positive commentary from domestic steelmakers on volume growth  

 

Top gainers in the metal pack include:

 

- Hindalco Industries up 1.8 percent  

- JSW Steel up 1.4 percent  

- Tata Steel up 1.2 percent  

- NMDC and Vedanta also traded higher  

 

The metal index has rebounded nearly 9 percent over the past quarter, supported by cyclical tailwinds and favorable trade dynamics.

 

Market Sentiment And Macro Context

 

The sectoral gains come amid a broader consolidation phase in Indian equities. Investors are digesting recent commentary from the Chief Economic Adviser, who reaffirmed the government’s fiscal discipline and projected a benign inflation trend through 2026. Bond yields remain stable, and the unchanged H2 borrowing plan has helped anchor rate expectations.

 

While IT and FMCG stocks remain under pressure, cyclical sectors like banking, metals, and infrastructure are attracting rotational flows. The rupee’s mild depreciation and steady oil prices are also contributing to a balanced risk environment.

 

Looking Ahead

 

With PSU banks and metals leading the charge, market participants will be watching for follow-through buying and confirmation of trend strength. Key triggers include upcoming monetary policy signals, global commodity data, and domestic macro releases such as GST collections and IIP figures.

 

As of midday, the sectoral resilience suggests that investors are selectively positioning for value and growth in areas aligned with fiscal support and global recovery themes.

 

Sources: Trendlyne Market Dashboard, Moneycontrol Live Markets Desk.