Shares of major public sector banks rallied up to 5% on Friday, aided by multiple factors despite a subdued sentiment in the broader market.

The Nifty PSU Bank Index settled at 8,184.35 with a gain of 125.6 points or 1.56%, while the benchmark Nifty50 ended 155.75 points or 0.6% lower at 25,722.1. Among the Nifty PSU Bank constituents, Union Bank, Canara Bank, Punjab National Bank and Bank of Baroda were top gainers.

A positive sentiment over Q2FY26 results of the public sector lenders and the SEBI’s new rules for Bank Nifty contributed to the upward momentum in stock prices. As per the new norms, the Bank Index is likely to have 14 constituents as against the current 12. As per a CNBC-Awaaz report, Yes Bank, Indian Bank, Union Bank and Bank of India could be in the fray for inclusion.

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