Bank Nifty closed 0.88% higher at 54,185.95 on Wednesday after rebounding over 1,150 points from its intraday low of 53,027. Banking stocks led the recovery, with Federal Bank rising 3.2% and Union Bank gaining 2.8%. The rally came despite broader market weakness, with Nifty IT plunging 5.6% and Sensex falling 304 points during the session.