MUMBAI: Public sector banking stocks came under intense selling pressure on Thursday, halting a three-session winning streak. The Nifty PSU Bank index tumbled over 2% in intraday trade, with heavyweights like State Bank of India (SBI), Punjab National Bank (PNB), and Canara Bank declining between 2% and 3% [citation:2][citation:3]. ICICI Bank, though a private lender, also slumped nearly 2%, dragging the broader financial indices lower [citation:3][citation:10].
Top losers: SBI, PNB, Canara, ICICI lead decline
Selling was broad-based, affecting both PSU and private lenders. According to data from NSE, Punjab National Bank dropped over 2.5%, while Canara Bank slipped nearly 2.1% [citation:3][citation:9]. ICICI Bank declined around 1.8%, and SBI traded 1.5% lower, retreating from its recent 52-week high [citation:2][citation:7].
Bank Nifty breaks 61,000; technical damage
The Nifty Bank index fell over 560 points to slip below the psychologically crucial 61,000 level, breaching immediate support at 61,250–61,350 [citation:3][citation:10]. Analysts noted that the breakdown could signal further weakness. "If 61,000 is not reclaimed quickly, another 200-300 point cut is possible," said Hitesh Tailor of Choice Equity Broking [citation:2][citation:10].
- PSU Bank index: down 2.1%, biggest intraday fall in two weeks [citation:3]
- SBI: drops 1.5% after hitting record high earlier this week [citation:7]
- PNB: cracks 2.48% to ₹122.10, lowest in 5 sessions [citation:8]
- Canara Bank: slips 2.1% to ₹141.77, extends two-day losing streak [citation:9]
- ICICI Bank: declines 1.57% to ₹1,355, contributes most to Bank Nifty fall [citation:3]
- Investor wealth: over ₹3 lakh crore eroded on BSE [citation:2]
- Market breadth: 2,413 declines vs 1,471 advances [citation:2]
What led to the sell-off?
According to market experts, the profit booking was overdue after three days of relentless rally. "PSU banks had run up sharply; some cooling off is healthy. The absence of fresh positive triggers and global uncertainty are prompting investors to book profits," said V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments [citation:2].
Additionally, the broader market weakness—with Sensex sliding over 700 points intraday—added to the pressure. Realty, auto, and FMCG sectors also witnessed heavy selling, creating a risk-off environment [citation:2].
| Sectoral index | Level | Change (%) |
|---|---|---|
| Nifty PSU Bank | 8,312.45 | -2.10% |
| Nifty Private Bank | 27,845.30 | -0.90% |
| Nifty Financial Services | 28,219.75 | -0.86% [citation:3] |
| Nifty Realty | 1,124.50 | -1.78% |
FII/DII flows
Foreign institutional investors (FIIs) were net buyers for the second straight session on February 18, purchasing equities worth ₹1,154 crore, while domestic institutions bought ₹440 crore [citation:2]. However, Thursday's provisional data may show a reversal as selling pressure intensified.
Expert view: "Selective buying in PSUs"
Rahul Sharma of JM Financial Services remains constructive on PSU banks for the long term but advises caution. "PNB is our top pick, but we recommend buying only on deeper corrections. The support for PNB is around ₹118-120," he noted [citation:1].
Technical levels to watch
For Bank Nifty, Gaurav Udani of ThincRedBlu Securities sees support at 61,000–61,200, with resistance at 61,800–62,000 [citation:3]. A close below 60,800 could trigger further downside toward 60,500.
February 19 closing: key takeaways
- Three-day rally snaps: PSU banks crack 2-3% after consistent gains [citation:3]
- SBI, PNB, Canara, ICICI top drags: each down 1.5% to 2.5% [citation:2][citation:3]
- Bank Nifty below 61,000: breaks key support, signals short-term weakness [citation:10]
- Broader market bleed: Sensex down 714 pts, midcaps underperform [citation:2]
- Investor wealth: ₹3 lakh crore wiped out in single session [citation:2]
- Next support: 60,800 for Bank Nifty; 25,200 for Nifty [citation:2][citation:10]
Outlook
With Bank Nifty breaching crucial supports, traders are advised to adopt a cautious stance. While the structural story for PSU banks remains intact due to improving asset quality, near-term volatility may persist. Investors can use dips to accumulate quality names, but fresh longs should wait for stability above 61,500.
Disclaimer: This report is based on live market data as of 3:30 PM, February 19, 2026. Prices are indicative and subject to change. Please consult your financial advisor before making investment decisions.