With PSU banking stocks leading a rise in Bank Nifty, analysts see improving sentiment in the banking sector after a brief consolidation phase.
Nifty Bank: The index had closed in the green at 56,239 earlier yesterday, the highest level seen by the index in more than three months.
IndusInd Bank shares dropped nearly 4 percent to trade at Rs 712 apiece.
ICICI Bank led the decline, shedding 1.3 percent to Rs 1,403.5 per share on the NSE. HDFC Bank also retreated, slipping over 1 percent.
HDFC Bank, ICICI Bank and other private lender stocks also dropped. This pushed the Nifty Bank index down nearly 1%.
The Nifty Bank index was up more than 1.3 percent to hover around 56,035, while the Nifty Financial Services index rose nearly 2 percent to stand at 26,810, as seen at 10.10 am.
Analysts however expect the bullish rally to continue, with Bank Nifty hitting further highs.
HDFC Bank share price: Chandan Taparia from Motilal Oswal expects Bank Nifty cross 58,000 over next 2-3 weeks.
Contributions from heavyweights like HDFC Bank and State Bank of India propelled the Bank Nifty index to a record high
Banking shares rallied in-line with the sentiment in the broader market, after latest inflation data raised optimism for potential RBI rate cuts, and easing US-China trade tensions offered respite from global recession fears.
Among top losers of the index are AU Small Finance Bank, which fell 1.44% while Kotak Mahindra Bank fell 1%.
Bank Nifty slipped over 600 points to move below 55,000 mark during intraday trade.
Almost all components of the BSE PSU Bank index is holding firm with steady gains, helping the index higher by 1.7 percent in early trade, though it gauge has cooled off from initial highs. The banking pack has the highest weightage in the benchmark indices.
Axis Bank shares surged 2 percent after lender’s Q4 results beat estimates. It had reported a net profit of Rs 7,118 crore in Q4FY25, marginally lower than Rs 7,130 crore in the corresponding quarter last year.
After a steady rally since April 9 led by banks, the market seems to be cracking. Could this be the start of another correction—or just a minor pause? Watch N Mahalakshmi in conversation with Sushil Kedia, Founder, Kedianomics.
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.
Bank Nifty emerged as the top sectoral gainer in trade as bulls bought banking stocks amid a broad-based market recovery.
Banking stocks surged after several state-run and private lenders cut fixed deposit and savings rates in response to the RBI’s recent repo rate reduction.
The volatility seen around bank stocks also comes amid anticipation of a rate cut by RBI’s MPC, which is set to announce its decision on April 9.
ICICI Bank and HDFC Bank shares are down 3% each, contributing the most to the decline on Nifty Bank index.
Axis Securities predicted a bullish outlook for Nifty Bank, as well as the benchmark Nifty 50 index.
The rally in the bank stocks pushed the Nifty Bank index up by over a percent to cross 49,000 mark for the first time after two weeks.
IndusInd Bank shares were the top gainers on the index, snapping their 5-day losing streak. This comes a day after the stock crashed 27% after the bank reported discrepancies in its derivatives portfolio.
Despite being in deep red, Nifty Bank was the best performer among the sectoral indices.
Banking stocks fell after the Reserve Bank of India’s monetary policy failed to announce additional liquidity measures, despite a 25-basis-point rate cut.