Bank Nifty Breaks New All-Time; SBI, Axis, HDFC, ICICI Top Bulls; Why Banking Stocks Rally?

Bank Nifty: Undeterred by persistent stock market volatility, Bank Nifty continued its bullish run to touch the 52-week high mark on Monday, April 21. The stellar rally was fuelled by strong performance of private banking sector stocks, including SBI, Axis Bank, HDFC, ICICI, etc.

Bank Nifty surged to an all-time high mark of 55262.7 points, which was more than its previous 52-week high mark of 54,467.35. AU Bank, IDFC Bank, ICICI Bank, Axis Bank, etc were among the top gainers of the index. Meanwhile, Nifty Private Bank was up 1.73% to 27479 points. Likewise, Nifty PSU Bank surged 2.26% to 6669.8 points.

Similarly, BSE Bankex was up 1.8% to 63416.65 points, half an hour after opening of today's trading session. Nifty Bank has surged nearly 8.1% year to date, which is significantly higher than Nifty 50's movement since 2025. In one month, the banking index has surged over 9.16%.

Nifty Bank Touches New High: What's Fuelling The Rally?

The sudden surge of positive sentiment among investors has come in the backdrop of better-than-expected Q4 results of certain banks. Additionally, investors are keenly waiting for the Q4 results announcement of other banks like Axis Bank, RBL Bank, Canara Bank, etc.

"Among the key sectors, the continued strength in the banking index has been crucial. It is now on the verge of hitting a new record high. The earnings of heavyweights like HDFC Bank and ICICI Bank are expected to provide important cues for the next market move. On the higher side, the index could target the 55,000-57,000 zone, considering the consolidation phase over the last nine months. In case of any dip, the 51,900-53,400 zone is expected to offer strong support," said Ajit Mishra - SVP, Research, Religare Broking in his weekly outlook

HDFC Bank Shares Surge After Strong Q4 Results

Shares of HDFC Bank opened in green after the Indian lender reported strong Q4 results last week. HDFC bank shares were 0.77% higher at Rs 1921.30 per share on BSE at 10:30 am on Monday.

HDFC reported a net profit of Rs 17,616.14 Cr (standalone), up by 6.7% from Rs 16,511.85 Cr in the year-ago quarter. The bank's net income remained flat at Rs 89,487.99 Cr in Q4FY25 compared to Rs 89,639 Cr in Q4FY24.

ICICI Bank Shares in Green

Just like HDFC Bank, ICICI Bank shares were trading in green on Monday. Shares of the Mumbai-headquartered lender were trading 0.59% higher at Rs 1414.95 per share on BSE on Monday.

ICICI Bank's net profit increased by 15.5% YoY to Rs 47,227 crore in FY2025 from Rs 40,888 crore in the year ended March 31, 2024 (FY2024), while its profit after tax improved by 18.0% YoY to Rs 12,630 crore in Q4FY25 from Rs 10,708 crore in Q4-FY24.

The Indian Stock Market Today

The Indian stock market today started the trading session on a bullish note. Nifty 50 opened higher at 23949 points and later crossed 2400 mark for the first time in 2025. BSE Sensex opened at 78903 points and was later up 550 points to 79,105.74. Banks emerged as the top gainers including ICICI Bank, HDFC Bank, Yes Bank, etc post Q4 earnings result.

"Even though the global economic scenario is mired in uncertainty, India appears relatively resilient. India is the only large economy which can grow at 6% even in a slowing global economy. This, along with the declining dollar, has the potential to attract more FPI inflows into India in the short run. The Q4 results of HDFC Bank and ICICI Bank have the potential to take Bank Nifty to all-time high. The focus of the FIIs will be the domestic consumption themes like financials, telecom, aviation, hotels, select autos, real estate, cement and health care. Growth stocks in the digital space also have the potential to move up. IT will continue to be under pressure since the growth outlook for the sector is bleak due to the expected sharp slowdown in the US economy," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.