New Delhi, Feb. 18 -- The Nifty Bank index has witnessed a healthy uptrend in recent sessions, even as the domestic equity benchmark Nifty 50 has struggled to sustain gains. The banking index is up nearly 3% year-to-date, while the Nifty 50 has slipped about 1.5% during the same period.

The Bank Nifty climbed to 61,309 in intraday trade on Wednesday, February 18, moving closer to its all-time high of 61,764.85, which it hit on February 3 this year. Strong Q3 earnings, a pause on RBI rate cuts, and relatively attractive valuations have boosted investor interest in banking stocks.

Can the rally in the banking pack sustain?

The banking sector's outlook has improved in the wake of in-line Q3 results and the RBI's reluctance to cut rates fu...