Bandhan Bank Gains 3.18%: 4 Key Factors Driving the Weekly Rally

Jan 24 2026 02:00 PM IST
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Bandhan Bank Ltd. closed the week ending 23 January 2026 with a 3.18% gain, outperforming the Sensex which declined 3.31% over the same period. The stock showed resilience amid sectoral and broader market weakness, buoyed by improved asset quality, robust institutional interest, and strong trading volumes. Despite a recent downgrade to a Sell rating, Bandhan Bank demonstrated notable short-term momentum, closing at Rs.149.35 on Friday, its highest level of the week.




Key Events This Week


Jan 19: Stock opens at Rs.142.45, declines 1.59% amid broader market weakness


Jan 20: Continued decline to Rs.139.35 (-2.18%) as Sensex falls sharply


Jan 21: Further dip to Rs.138.00 (-0.97%) with muted market sentiment


Jan 22: Q3 results reveal improved asset quality; stock rebounds 3.37% to Rs.142.65


Jan 23: Exceptional volume surge and institutional interest lift stock 4.70% to Rs.149.35





Week Open
Rs.144.75

Week Close
Rs.149.35
+3.18%

Week High
Rs.149.35

vs Sensex
+6.49%



Week Opens with Declines Amid Market Weakness


Bandhan Bank started the week on a subdued note, opening at Rs.142.45 on 19 January 2026, down 1.59% from the previous Friday’s close of Rs.144.75. This decline coincided with a broader market sell-off, as the Sensex fell 0.49% to 36,650.97. The downward trend continued on 20 January, with the stock dropping 2.18% to Rs.139.35, while the Sensex plunged 1.82% amid heightened market volatility. On 21 January, Bandhan Bank further slipped 0.97% to Rs.138.00, tracking the Sensex’s marginal 0.47% decline. These early sessions reflected cautious investor sentiment amid macroeconomic uncertainties affecting private sector banks.



Q3 Results Spark Rebound on 22 January


On 22 January, Bandhan Bank released its Q3 FY26 results, highlighting an improvement in asset quality despite ongoing pressure on profitability. The market responded positively, with the stock rallying 3.37% to close at Rs.142.65, outperforming the Sensex which gained 0.76%. The improved asset quality metrics provided some relief to investors concerned about credit costs, although profitability challenges remain a key focus. The volume on this day surged to 3,21,544 shares, signalling renewed interest ahead of the week’s close.




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Exceptional Volume and Institutional Interest Drive Gains on 23 January


The final trading day of the week saw Bandhan Bank emerge as one of the most actively traded stocks by value and volume. On 23 January, the stock surged 4.70% to Rs.149.35, its weekly high, despite the Sensex declining 1.33%. Trading volumes exploded to nearly 3.95 million shares, with a traded value exceeding ₹220 crores. Institutional participation was particularly notable, with delivery volumes on 22 January rising 58.71% above the five-day average to 59.02 lakh shares, signalling strong accumulation.


The stock opened sharply higher at Rs.150.20, a 5.43% gap up from the previous close, and touched an intraday high of Rs.150.70. Although some profit booking was evident as the weighted average price gravitated closer to Rs.145.10, the overall price action reflected robust demand. Bandhan Bank outperformed its private sector banking peers by 2.83% and delivered a 2.79% return relative to a flat sector and Sensex on the day.


Technically, the stock traded above its 5-day and 20-day moving averages, indicating short-term bullish momentum. However, it remained below longer-term averages (50-day, 100-day, 200-day), suggesting medium- to long-term trends are still under pressure. This mixed technical picture aligns with the recent downgrade of its Mojo Grade to Sell, reflecting ongoing valuation and risk concerns.



Daily Price Comparison: Bandhan Bank vs Sensex (19-23 Jan 2026)


















































Date Stock Price Day Change Sensex Day Change
2026-01-19 Rs.142.45 -1.59% 36,650.97 -0.49%
2026-01-20 Rs.139.35 -2.18% 35,984.65 -1.82%
2026-01-21 Rs.138.00 -0.97% 35,815.26 -0.47%
2026-01-22 Rs.142.65 +3.37% 36,088.66 +0.76%
2026-01-23 Rs.149.35 +4.70% 35,609.90 -1.33%



Key Takeaways from the Week


Positive Signals: Bandhan Bank’s 3.18% weekly gain against a 3.31% Sensex decline highlights its relative strength amid sectoral and market headwinds. The improvement in asset quality reported in Q3 provided a fundamental boost, while the surge in institutional delivery volumes and traded value on 23 January indicates growing investor conviction. The stock’s ability to trade above short-term moving averages suggests emerging bullish momentum.


Cautionary Notes: Despite the short-term rally, Bandhan Bank remains below its longer-term moving averages, reflecting ongoing medium- and long-term challenges. The recent downgrade to a Sell Mojo Grade underscores concerns about valuation and profitability pressures. The weighted average price on 23 January gravitating towards the day’s low signals some profit booking, indicating that the rally may face resistance without sustained positive catalysts.




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Conclusion: A Week of Mixed Signals but Relative Strength


Bandhan Bank Ltd. demonstrated resilience during a challenging week for the broader market and private sector banking sector. The stock’s 3.18% gain, driven by improved asset quality, strong institutional interest, and exceptional trading volumes, contrasts with the Sensex’s 3.31% decline. While short-term technical momentum is encouraging, the stock’s position below key longer-term moving averages and a Sell Mojo Grade advise caution. Investors should closely monitor upcoming quarterly results and sector developments to assess whether the recent rally can be sustained or if profit-taking pressures will re-emerge.






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