Bank Nifty Nears Bear Market; Jefferies Flags ₹5,000 Cr Risk For Banks Amid Currency Pressure

Bank Nifty is nearing bear market territory after a sharp sell-off in March, with the index losing nearly $95 billion in value. Data from National Securities Depository Limited (NSDL) shows foreign investors pulled out a record ₹32,700 crore from financial stocks in just the first two weeks of the month, adding to the pressure. The situation could worsen as the Reserve Bank of India tightens rules on offshore dollar trades to stabilise the rupee. According to a report by Jefferies, banks may face losses of up to ₹5,000 crore as they unwind currency positions. With concerns around slower credit growth, rising NPAs, and continued FII outflows, the near-term outlook for banking stocks remains cautious.