Bank Nifty rallied 2% on November 5 and was trading near psychologically important 57,000-mark with IndusInd Bank, AU Small Finance Bannk leading gains.
Other gainers on the sectoral index were ICICI Bank, Axis Bank, Canara Bank, which climbed 2.7%, 2.5% and 2.47%, respectively. At 10:45 am on November 5, Bank Nifty was trading 2% higher at 57,003.25.
Brent crude futures dropped 1% to $93.5 per barrel, after an 8.7% slide in the previous session.
"Unlike the earlier gradual decline (in oil prices), the magnitude of this move can materially improve India's near-term macro and earnings outlook if sustained," said Hariselvan Radhakrishnan, founder and CEO of research advisory firm HST Wealth.
The domestic markets are now showing signs of a recovery. Benchmarks Nifty 50 and BSE Sensex have risen 5.6% in the last five sessions, in their longest winning streak in nearly five months, aided by foreign buying, easing oil prices, and strong earnings.