The Indian stock market witnessed a major rally on Monday, March 24, 2025, after the bank strike today was officially called off, driving up investor sentiment. Led by gains in banking and real estate stocks, the BSE Sensex climbed 972.91 points (1.27%) to reach 77,878.42, while the NSE Nifty rose 286 points (1.22%), touching 23,636.40.
Key Highlights:
The rally was fuelled by the sudden withdrawal of the proposed bank strike in March 2025, which had been planned by the United Forum of Bank Unions (UFBU). The collective of nine unions had called for a two-day strike after discussions with the Indian Banks’ Association (IBA) failed to yield results on various demands.
Bank Strike Called Off: Why It Matters
The UFBU had listed several key demands:
- Recruitment in all job categories to ease branch staffing shortages
- Regularisation of temporary employees
- A five-day work week for all banks
- Withdrawal of performance-linked reviews
- Safety measures for bank staff
- Gratuity Act amendment to raise the ceiling to ₹25 lakh
Had the strike proceeded, it would have impacted over 8 lakh bank employees across public, private, foreign, cooperative, and regional rural banks.
However, after late-night developments and further communication, the UFBU called off the strike, a move welcomed by the markets and industry stakeholders.
Market Response: Bank and Realty Stocks Lead the Rally
Investor confidence surged in response to the news, with major indices turning green right from the opening bell.
- NTPC led the Sensex pack with a 4.36% gain, trading at ₹366.45
- Kotak Mahindra Bank followed with a 4.24% rise
- SBI jumped 2.72%, trading at ₹773.50
On the Nifty sectoral indices, banking and real estate stocks were the top performers:
- Nifty PSU Bank rose 2.84% to 6,305
- Nifty Private Bank gained 2.46% to reach 25,852.65
- Nifty Realty was up 2.01% to 880.10
Earlier in the day, at market open (9:15 am), the Sensex had already gained 481.79 points (0.63%), with early leaders including Tata Motors, Power Grid, and NTPC. The Nifty Realty Index showed strength with a 1.29% rise.
Global Context and Oil Market Movement
Interestingly, the rally in oil & gas stocks came despite falling global oil prices. As of Monday morning:
- Brent Crude (May 2025 futures) was down 0.46%, trading at $71.83
- WTI Crude (May 2025 futures) slipped 0.42% to $67.99
This paradox may reflect investor confidence in domestic demand rather than global price signals.
Outlook
The withdrawal of the bank strike today has added a much-needed boost to the markets, particularly ahead of the fiscal year-end. Analysts expect continued bullish sentiment in the banking and real estate sectors in the short term, barring any major global disruptions.
As discussions between the UFBU and IBA continue, the market will watch closely for further progress on long-standing banking sector issues.
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