Indian banking stocks rebounded on Tuesday afternoon, with the Bank Nifty turning positive after an early decline, as easing crude oil prices improved broader market sentiment.

The Bank Nifty index was up around 0.35% in afternoon trade, reversing earlier losses of as much as 1%. The recovery marked a pause in a four-day losing streak, as buying interest returned across major banking names after mid-session volatility.

A key driver of the turnaround was a decline in global crude oil prices. Brent crude fell roughly 2% to about $93.19 per barrel, slipping back below the $95 level that had weighed on sentiment earlier. Lower oil prices are generally seen as supportive for India, given the country’s heavy reliance on crude imports.

Cheaper oil reduces import costs and helps ease inflationary pressures, which can improve macroeconomic stability and strengthen the operating environment for banks. A more stable inflation outlook is also viewed as supportive for credit growth and overall loan demand.

Among the 14 constituents of the Bank Nifty, 10 stocks traded in positive territory. AU Small Finance Bank led gains, rising more than 1%, while major lenders such as State Bank of India, Punjab National Bank, HDFC Bank, and Kotak Mahindra Bank posted gains between 0.5% and 1%.

The broad-based recovery reflected improved risk appetite in rate-sensitive sectors, with investors closely tracking movements in oil prices as a key macroeconomic indicator for India’s inflation and banking outlook.