ICICI Bank jumped 4 percent and is the top index gainer followed by Axis Bank, Federal Bank, State Bank of India, RBL Bank and IndusInd Bank.
The Indian stock market is trading on a handsome note with Sensex up 339.52 points or 0.85 percent at 40322.50, and the Nifty adding 83.80 points or 0.71 percent at 11846.30.
Among the sectors, the banking index outperformed, gaining over 2 percent led by ICICI Bank which jumped 4 percent and is the top index gainer. This is followed by Axis Bank, Federal Bank, State Bank of India, RBL Bank and IndusInd Bank.
However, share price of HDFC Bank is trading flat after the company declared its September quarter results on October 17. The company reported an 18.4 percent year-on-year (y-o-y) growth in profit at Rs 7,513.11 crore for the September quarter, driven by PPoP, NII and lower tax rate. The profit in the year-ago period was at Rs 6,345 crore.
Net interest income (NII), the difference between interest earned and interest expended, increased by 16.7 percent year on year to Rs 15,776.4 crore in the quarter, driven by asset growth of 21.5 percent and a core net interest margin for the quarter at 4.1 percent.
Nomura has a buy rating on HDFC Bank and has raised target to Rs 1,450 from Rs 1,325 while Jefferies also has a buy with target raised to Rs 1,450 from Rs 1,350.
CLSA has a buy as well with target raised to Rs 1,525 from Rs 1,450 per share. Macquarie has an outperform rating with target raised to Rs 1,489 from Rs 1,219 per share.
Shabbir Kayyumi, Head of Technical & Derivative Research at Narnolia Financial Advisors suggests buying State Bank of India. "The is trading in an upmove while forming Inverse Head & Shoulders pattern and this pattern will complete on a close above Rs 206. It is trading near the strong resistance line standing around Rs 202, which has been tested multiple times and also suggests that a strong bullish bias will continue after a breakout," he said.
Nifty Financial Services gained almost 2 percent. HDFC added 3 percent followed by Mahindra & Mahindra Financial Services, HDFC Life, Bajaj Finserv and HDFC AMC.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.