Bank stocks recorded significant gains on March 24, pushing the Nifty Bank index higher in the green territory for the eighth consecutive session. The bank index was up 2 percent to stand at 51,621 in morning trade.
Notably, this is the highest level seen by the Nifty Bank index since early January when it had last crossed the 51,500-mark. This comes amid an uptrend in the overall market.
Kotak Mahindra Bank shares were the top gainer on the index, jumping over 4 percent to trade at nearly Rs 2,172 apiece. Notably, this is the highest level seen by the stock in three years. This comes after the bank announced the appointment of Bhavnish Lathia as its new Chief Technology Officer (CTO), along with other high-level appointments. The stock is currently the top gainer on Sensex as well as Nifty 50.
The shares of Canara Bank and Punjab National Bank (PNB) followed, trading over 2.6 percent higher each. Canara Bank shares were trading at Rs 89.85 apiece. Notably, LKP Securities analyst Rupak De has kept a 'Buy' call on the stock, with a target price of up to Rs 97 per share. This implies an upside potential of nearly 11 percent from the stock's previous closing price. The stock has now seen strong recovery after hitting a 52-week low of Rs 78.60 per share on March 3. PNB shares were trading at a one month-high level of Rs 95.58 apiece.
Heavyweight Axis Bank shares jumped over 2 percent to trade at Rs 1,094 apiece. This is the highest level seen by the stock so far in 2025. Federal Bank, IDFC First Bank and Bank of Baroda shares were each trading nearly 2 percent higher.
Global brokerage Citi has kept a 'Buy' rating on the shares of ICICI Bank, with a target price of Rs 1,600 apiece. The heavyweight bank stock has hit a 52-week high of Rs 1,367 per share on March 24.
Two other heavyweight stocks, State Bank of India and HDFC Bank, also saw a strong surge in their respective share prices. SBI shares were trading over 1.7 percent higher at Rs 766 apiece, while HDFC Bank shares were trading over 1.3 percent higher at Rs 1,795 apiece.
AU Small Finance Bank and ICICI Bank shares were also trading in the green, nearly 1 percent higher than their respective previous closing prices.
International brokerage Citi has kept a 'Buy' rating on the shares of ICICI Bank, with a target price of Rs 1,600 per share. The bank stock has now hit an all-time high of Rs 1,367 per share.
IndusInd Bank shares however bucked the trend to trade in the red with marginal losses at Rs 686 apiece. The stock has seen significant volatility in the past few weeks, after the bank disclosed some accounting lapses in its derivatives portfolio.
Notably, the surge in the bank stocks strongly pushed the overall market.
"On the weekly chart, a double bottom pattern is nearing a breakout, indicating a potential bullish reversal. As long as it holds 50,600, sentiment remains bullish. Resistance is at 51,750, while support lies at 50,000 and 49,700, with 49,000 acting as a crucial breakdown level," said Hardik Matalia, Derivative Analyst, Choice Broking during pre-market trading.
The surge in bank stocks and overall market comes after a strong slump seen following a bull run and resulting highs recorded in 2024. After nearly touching 86,000 in September last year, the Sensex tumbled significantly to drop below 73,000. However, it has now recovered sharply to stand above 77,800.
Market veteran Ramesh Damani has showed strong hopes for the market. "The bull market has resumed," he said while speaking to CNBC-TV18. "What we saw over last 5 months was just a correction in a bull market, not topping of the bull market. It was just a normal market correction based on valuations," he further said.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions.
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