Last Updated:June 26, 2025, 14:57 IST
Bank stocks saw strong buying interest on June 26, propelling the Nifty Bank index to a fresh all-time high
Bank Nifty
Bank Nifty Hits Record High: Bank stocks saw strong buying interest on June 26, propelling the Nifty Bank index to a fresh all-time high of 57,076.95, driven largely by private sector lenders.
Heavyweights HDFC Bank and Axis Bank were among the top performers in the banking pack. Shares of Axis Bank jumped over 1.5 per cent to trade at Rs 1,231.60, while HDFC Bank soared to a new record of Rs 2,008 per share. The rally in these two majors also lifted the benchmark Sensex and Nifty indices significantly.
HDFC Bank extended its gains for the third consecutive session, buoyed by strong investor interest in its subsidiary HDB Financial Services’ upcoming Rs 12,500 crore IPO. Additionally, the bank has set June 27 as the record date to determine shareholder eligibility for its declared dividend, further fuelling buying interest.
Broader Sector Performance
Other private lenders, including AU Small Finance Bank and ICICI Bank, were trading nearly 1 per cent higher. IndusInd Bank and Kotak Mahindra Bank also saw marginal gains.
On the flip side, public sector banks such as State Bank of India (SBI), Federal Bank, Bank of Baroda, Canara Bank, PNB, and IDFC First Bank traded with minor losses.
Can Bank Nifty Hit 58,000?
Analysts expect the positive momentum to continue. Chandan Taparia, Senior VP and Head of Derivatives & Technical Research at Motilal Oswal, said: “If Bank Nifty holds above 56,250, we can expect a near-term upside of 57,050 and potentially see levels above 58,000 over the next 2–3 weeks. I expect momentum in both Nifty and Bank Nifty post-expiry.”
What’s Fueling the Rally?
Ajay Bagga, Independent Analyst, attributed the rally to a combination of strong macroeconomic factors. “With the RBI cutting rates, injecting liquidity, and adopting macro-prudential easing, banks are well positioned for growth in the coming quarters. Falling inflation, income tax relief, and a favourable monsoon have created a positive backdrop for credit growth.”
Bhavik Joshi, Business Head at INVasset PMS, cited liquidity-driven macro reforms as a major catalyst. “The RBI has taken bold steps, including 100 basis points in repo rate cuts this year and a 100 bps CRR reduction. Its recent $10 billion USD/INR swap further injected long-term liquidity into the system. Bank Nifty’s performance reflects this macro transformation.”
Sunny Agrawal of SBI Securities highlighted that HDFC Bank and ICICI Bank together account for nearly 50 per cent of Bank Nifty’s weight. “Today’s rally in HDFC Bank to lifetime highs significantly lifted the index. ICICI Bank is also trading close to its record levels. While NIMs may see some pressure in Q1 FY26, improved credit growth and favourable rate conditions should drive strong exits in Q4 FY26.”
Meanwhile, the Nifty Financial Services Index surged nearly 1 per cent, hitting a record 27,144. Top gainers included ICICI Prudential Life Insurance, Jio Financial Services, Shriram Finance, and Bajaj Finance, each rising over 2 per cent.
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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