HDFC Bank, Axis Bank, SBI stocks fall today after five-day rally; Bank Nifty slips below 58,000

After five consecutive sessions of gains, shares of HDFC Bank, Axis Bank, and State Bank of India (SBI) declined on Friday, October 24, as investors booked profits at elevated levels. The weakness in these large banking counters dragged the Bank Nifty index below the 58,000 mark, a day after it touched a record high.

HDFC Bank and Axis Bank shares fell 1.3 percent each, closing at Rs 995.9 and Rs 1,242, respectively. SBI stock was down 0.8 percent to Rs 904. The three heavyweights had risen between 2.9 percent and 7.6 percent over the past five sessions, supported by strong second-quarter results across the banking sector.

Bank stocks give up 5-day gains

The Bank Nifty index slipped 0.6 percent to 57,720, falling below the trend-deciding level of 58,202 identified by Axis Securities. The brokerage had earlier cautioned that if the index traded below this mark, it could see profit booking and correction towards 57,827-57,201 levels. With Friday’s fall, the index also dropped below its first support zone.

Axis Securities noted that the earlier rally had been driven by better-than-expected Q2 earnings from major players. PL Capital said the next key support is near the previous consolidation zone at 57,300, which needs to be sustained. On the upside, it projected potential targets of 59,700 and 60,500 in the coming days.

• Also read | Bank Nifty sees profit booking, trades below 58,000

The Bank Nifty had hit an all-time high of 58,577.50 on October 23, led by private banks such as Axis Bank, Kotak Mahindra Bank, HDFC Bank, ICICI Bank, and SBI, which all traded higher in Thursday’s session. Analysts had attributed the uptrend to resilient Q2 performances, with Nitin Aggarwal of Motilal Oswal Financial Services noting that HDFC Bank and ICICI Bank had reported strong results.

Aggarwal said the decline in net interest margins (NIMs) across most banks had been lower than expected, and Q2 was likely the bottom in earnings growth. The earnings momentum, he added, is expected to strengthen ahead, with flat growth projected for FY26 and double-digit expansion likely in FY27.

Despite the day’s decline, the sentiment in the banking space remains firm, with analysts expecting the sector’s earnings and valuation support to continue in the medium term.

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