Mumbai : Bank Nifty closed at a record high on Thursday, riding a bullish wave, as liquidation of bearish positions ahead of the expiry of the June derivative contracts fuelled the upmove.
The index comprising shares of 12 top lenders advanced for the third consecutive session, surging 1% to 57,206.70 on Thursday, the highest closing level.
Technical analysts said the index is expected to be at 57,500–58,000 levels in the near term and outperform the benchmark Nifty.
“Bank Nifty has witnessed good momentum recently and the positive undertone, along with short covering, led to the index making fresh highs today,” said Nilesh Jain, head of derivatives and technical research, Centrum Broking.
Out of the 12 stocks in the index, nine advanced and three decliThe change in RBI’s policy stance and significant infusion of liquidity also boost buying interest: Analysts ned. HDFC Bank jumped close to 2% ahead of the record date for the dividend. AU Bank and Axis Bank rose around 1.5% each. ICICI Bank advanced by over 1%. State Bank of India, IDFC First Bank and Federal Bank declined.
“Most of the stocks in the banking pack were trading at low valuations sometime back and are catching up with the market currently,” said Christy Mathai, fund manager, Quantum Mutual Fund. “The change in RBI’s stance and the significant infusion of liquidity have also spurred buying interest.”
In the past month, the Bank Nifty index gained 2.9%, while the benchmark Nifty advanced 2.2% in the same period. So far in 2025, the Bank Nifty is up 12% against the 7.6% gains in the Nifty.
Jain said the technical setup suggests room for further upside and the provisional derivatives data indicate a strong build-up of bullish positions, which could propel the banking stocks higher. The near-term setup remains strong in HDFC Bank and ICICI Bank, he said.
Mathai said despite the rally in NBFC stocks, the runway for growth looks good due to their largely retail focus. “Private banks are our top picks in the segment,” said Mathai. “The impact on the net interest margins is also expected to normalise a few quarters down the line, and there is potential for earnings growth to pick up in the sector.”
The index comprising shares of 12 top lenders advanced for the third consecutive session, surging 1% to 57,206.70 on Thursday, the highest closing level.
Technical analysts said the index is expected to be at 57,500–58,000 levels in the near term and outperform the benchmark Nifty.
“Bank Nifty has witnessed good momentum recently and the positive undertone, along with short covering, led to the index making fresh highs today,” said Nilesh Jain, head of derivatives and technical research, Centrum Broking.
Out of the 12 stocks in the index, nine advanced and three decliThe change in RBI’s policy stance and significant infusion of liquidity also boost buying interest: Analysts ned. HDFC Bank jumped close to 2% ahead of the record date for the dividend. AU Bank and Axis Bank rose around 1.5% each. ICICI Bank advanced by over 1%. State Bank of India, IDFC First Bank and Federal Bank declined.
“Most of the stocks in the banking pack were trading at low valuations sometime back and are catching up with the market currently,” said Christy Mathai, fund manager, Quantum Mutual Fund. “The change in RBI’s stance and the significant infusion of liquidity have also spurred buying interest.”
In the past month, the Bank Nifty index gained 2.9%, while the benchmark Nifty advanced 2.2% in the same period. So far in 2025, the Bank Nifty is up 12% against the 7.6% gains in the Nifty.
Jain said the technical setup suggests room for further upside and the provisional derivatives data indicate a strong build-up of bullish positions, which could propel the banking stocks higher. The near-term setup remains strong in HDFC Bank and ICICI Bank, he said.
Mathai said despite the rally in NBFC stocks, the runway for growth looks good due to their largely retail focus. “Private banks are our top picks in the segment,” said Mathai. “The impact on the net interest margins is also expected to normalise a few quarters down the line, and there is potential for earnings growth to pick up in the sector.”
