Today the banking sector has made a great comeback in the Indian stock market with all-round growth. Leaving behind the sluggishness and ups and downs of the last few sessions, banking index Nifty Bank jumped by more than 560 points. This spectacular recovery was led by the two biggest heavyweights of the market – HDFC Bank and State Bank of India (SBI), whose shares registered a strong rise of up to 2%. Let us try to understand it in detail in the language of statistics. We also try to understand what is the opinion of experts on this rise.
Strong rise in banking shares
On Wednesday, shares of HDFC Bank, State Bank of India (SBI), IndusInd Bank and other big banks increased by up to 2%. Due to this, the Nifty Bank index rose by about 1 percent. The special thing is that the maximum increase was seen in financial stocks on Dalal Street. As of 12:40 pm, the Nifty Bank index was trading at 58,023, up nearly 561 points. The maximum increase of about 2 percent was seen in the shares of State Bank of India (SBI). Shares of Union Bank of India, Punjab National Bank (PNB), Canara Bank, HDFC Bank and Bank of Baroda also saw a rise of more than 1 percent.
Shares of IDFC First Bank, ICICI Bank and AU Small Finance Bank were up around 1 per cent each, while shares of Yes Bank, Axis Bank, Federal Bank and Kotak Mahindra Bank were trading in the green with marginal gains. Siddharth Khemka, Research Head, Wealth Management, Motilal Financial Services, said in an ET report that improving balance sheet, better liquidity position, stable interest rates and reduction in credit costs are expected to support strong growth. Also, this may lead to an increase in the earnings of the financial sector at the broader level.
Important day for Q1 results on Saturday
Ahead of the announcement of important Q1 results on Saturday, the shares of Indian banks are seeing a rise. Five big private banks, including HDFC Bank, Axis Bank, Kotak Mahindra Bank, ICICI Bank and Yes Bank, are going to declare their results for the April-June quarter of the current financial year 2027 on Saturday (July 18).
Nomura said in its report that it expects its covered banks to show modest core-PPOP growth due to slower NII growth and controlled operating expenses (opex), while PAT growth will remain subdued due to seasonally higher credit costs. He has named ICICI Bank, HDFC Bank and Kotak Mahindra Bank as his top choices.
The international brokerage said loan growth has been strong for HDFC Bank and Yes Bank, but slow for Axis Bank and Kotak Mahindra Bank. Nomura expects loan growth to remain strong for ICICI Bank. However, overall he expects the net interest margin of banks to decline.
Meanwhile, Motilal Oswal Financial Services said that its channel check shows that MSME credit demand has been strong in the April-June quarter of the current financial year 2027 and the working capital cycle has also increased. The domestic brokerage firm further said that private banks have a higher share in larger loan sizes (higher ticket sizes), while public sector banks are increasing market share through competitive pricing and CGTMSE-supported lending.
How will Nifty Bank be in future?
Vatsal Bhuva, Technical Analyst, LKP Securities, expects the Nifty Bank Index to get support in the zone of 56,80056,900, while immediate resistance is visible around 58,200. According to Bajaj Broking, on the upside, Rs 58,700 (June high) is the immediate hurdle. He said that a strong close above this level would confirm the breakout from the current consolidation and the next round of rally could begin in the coming weeks, which could reach 59,300 and eventually 60,000 levels.
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