Bank Nifty snaps six-day rally to slip 1.3% from day's high, Kotak Mahindra, HDFC Bank top laggards

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26 Aug, 2025 12:21

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Banking stocks fell on April 23, snapping Bank Nifty's six-day gaining streak as the index took a pause from a recent rally, down nearly 1.3 percent from the highest level.

The selloff comes a day after the bank index hit a record high of 55,961 for the first time, including several bank shares touching fresh highs. The fall in share prices may be driven by profit booking after the recent upmove. So far this year, the Nifty Bank index is higher by 8 percent so far this year, having witnessed a sharp rebound since April 9.

On the technicals of the Bank Nifty index, Axis Securities said the trend-deciding level would be 55,617. "If Bank Nifty trades above this level, it may rally up to 55991-56335-56709 levels. However, if it trades below 55617 levels, we may witness profit booking in the market, and the index may correct up to 55273-54900-54556 levels."

Kotak Mahindra Bank shares were the top loser on the index, falling 2 percent to trade at Rs 2,221.40 apiece. Heavyweight HDFC Bank followed, dropping over 2 percent each to close at Rs 1,920 per share. Notably, this comes a day after the private lender achieved the Rs 15 lakh crore-milestone following a sharp surge in share price, becoming the third Indian company to hit the level.

Canara Bank and State Bank of India (SBI) shares closed over 1 percent lower each. Federal Bank, Axis Bank, Bank of Baroda and Punjab National Bank (PNB) meanwhile closed with marginal gains.

Despite the bearish trend, few bank stocks bucked the trend to trade in the green. AU Small Finance Bank shares surged nearly 8 percent to close at Rs 662 apiece. The sharp surge in the share price comes after the lender reported a 37 percent rise in net profit to Rs 2,106 crore in FY25. IDFC First Bank shares also gained over 2 percent to trade at Rs 68.34 apiece. IndusInd Bank and ICICI Bank shares closed with marginal gains.

The Reserve Bank of India (RBI) on April 21 released the Liquidity Coverage Ratio (LCR) norms and assigned additional run-off rates of 2.5 per cent to internet and mobile banking enabled retail and small business customer deposits. Motilal Oswal in its latest report said that revised LCR framework is expected to enhance banks’ funding and liquidity operations. "We maintain our positive view on the banking sector," the brokerage said. It further said that its top picks among the bank stocks are ICICI Bank, HDFC Bank, SBI and AU Small Finance Bank.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.