Last Updated:June 03, 2025, 10:15 IST
Shares of the banking index Bank Nifty hit a fresh all-time high on Tuesday; Key points for investors
Bank Nifty
Shares of the banking index Bank Nifty hit a fresh all-time high on Tuesday, June 3, lifted by strong gains in heavyweights like HDFC Bank and State Bank of India.
At 9.18 am, the index gave up its gains to trade mildly in the red, after hitting a lifetime high of 56,161.40.
Within the Nifty Bank index, Federal Bank, AU Small Finance Bank, and IndusInd Bank were the top gainers, advancing between 0.5% and 1.2% each. Meanwhile, heavyweights such as ICICI Bank, Axis Bank, and Kotak Mahindra Bank dragged the index lower, with losses of up to 80 basis points.
So far in 2025, the Nifty Bank index has gained 10%, delivering a one-year return of 9.7%. From its 52-week low, the index has recovered by 15%, highlighting a steady turnaround in the banking sector.
Rate-sensitive stocks have been in focus as the Reserve Bank of India (RBI) is widely expected to cut the benchmark repo rate by 25 basis points at its upcoming meeting on June 6, 2025. Under the leadership of new RBI Governor Sanjay Malhotra, the central bank has already lowered the repo rate by 50 basis points across its last two meetings, bringing it down from 6.5% to 6%.
Looking ahead, most economists anticipate a further 25 basis point cut in June, with some expecting a terminal rate in the range of 5% to 5.25% as part of this quantitative easing cycle. Easing food prices, driven by a moderation in inflationary pressures, have already led to a cooling in headline inflation. Favourable weather patterns, including the expected La Niña effect and a forecast of above-normal monsoons, are also likely to support food prices in the near term.
Meanwhile, the Indian economy continues to display robust growth, with GDP expanding by 7.4% in the March quarter of FY25. Economists at Emkay Global noted that the strong Q4 growth was partly supported by a surge in government spending, particularly through public capital expenditure, reflecting the resilience of the economy.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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