Nifty Bank Jumps 12% in November As FII Flows, Strong Q2 Results Power Rally

Banking stocks have led the market rally in November, with the Nifty Bank outperforming the benchmark Nifty, supported by strong Q2 earnings, renewed foreign investor interest and expectations of a favourable interest-rate cycle. Improved profitability, healthy credit growth and easing funding pressures have boosted sentiment across major lenders. With FII flows returning to banking names and valuations still seen as reasonable relative to broader markets, investors are assessing whether the sector has further room to run. Sharad breaks down the key drivers behind the banking rally and the road ahead.