There has been pressure on banking shares in the Indian stock market for the last few weeks. Increasing global uncertainties, rising crude oil prices and increasing apprehensions regarding interest rates have increased the concern of investors. However, there has been a tremendous rise in banking shares in the last two days. Therefore, many big brokerages and analysts believe that selected banking stocks can give excellent returns to investors in the next one year.
Why increased pressure on banking sector?
According to experts, the impact of the ongoing tension in the Gulf region is visible on the global oil market. There is a danger of inflation increasing due to increase in crude oil prices, due to which the possibility of increase in interest rates has also strengthened. On the other hand, Foreign Portfolio Investors (FPIs) are continuously selling in the Indian market and due to their large stake in the banking sector, the shares of this sector are under pressure.
Fundamentals still strong
Despite the weakness in the market, the fundamental position of banks remains strong. There was no major increase in NPA (bad loans) in any major bank in the recently announced quarterly results. Even in the data of the first quarter of the financial year 2026-27, there is no possibility of any major tension.
However, experts believe that the real test will be in the coming quarters, as banks have put a lot of emphasis on retail lending in the last few years. If there is no major pressure in this sector also, it will be a sign of the strength of the banking industry.
Analysts keep an eye on these 8 bank stocks
According to the Stock Reports Plus report of June 10, 2026, some banking stocks may see a rise of up to 26 percent during the next 12 months. These include HDFC Bank, ICICI Bank, Karur Vysya Bank, City Union Bank, State Bank of India (SBI), Union Bank of India, Bank of Baroda and Canara Bank.
Given the strong balance sheet, better asset quality, digital banking expansion and stable profitability of these banks, analysts are maintaining a positive attitude towards them.
Opportunities for long term investors
Experts say banking stocks may remain volatile in the near term, but banks with strong fundamentals may offer attractive opportunities for long-term investors. If the growth rate of the economy remains strong and NPAs remain under control, this sector may perform better in the coming years.
At present, amid market volatility, investors are keeping an eye on these banking stocks, in which analysts have predicted strong returns in the next one year.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsh advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
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