Bank Nifty Creates New ATH: Strong Momentum in HDFC Bank, Axis Bank Shares

In a strong show of financial sector resilience, the Bank Nifty surged to a fresh all-time high on June 27, climbing past the 57,000 mark in intraday trade. The rally was powered by robust gains in leading private lenders like HDFC Bank and Axis Bank, both of which jumped over 1%, lifting sentiment across the sector.

At its session high, the Bank Nifty touched 57,070, setting a new benchmark on the back of broad-based buying in banking stocks. The index, which tracks the performance of 12 banking companies listed on the NSE, has shown a steady upward trajectory in recent weeks, underpinned by a favourable macro backdrop and improved credit demand.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Private Banks Lead the Charge

Among the top performers in the pack were HDFC Bank, Axis Bank, Kotak Mahindra Bank, and ICICI Bank — all registering notable intraday gains. HDFC Bank’s continued strength comes amid investor optimism around its merger synergies and improving margins. Axis Bank also remained in focus, following consistent performance in loan growth and asset quality.

Public sector banks like State Bank of India (SBI) also held firm, contributing to the rally, albeit with more modest gains.

What’s Driving the Momentum?

Analysts attribute the rally to several interlinked factors — including improving balance sheet health across the banking industry, sustained credit growth, and the Reserve Bank of India’s (RBI) supportive policy stance. The sector has also benefited from moderating inflation and expectations of a prolonged pause in interest rate hikes, which bodes well for banking margins.

Foreign institutional investors (FIIs) have also turned net buyers in Indian equities in recent weeks, with the banking sector remaining one of their preferred bets, thanks to its earnings visibility and structural growth story.

Outlook for the Bank Nifty

Technical analysts note that the Bank Nifty has broken through key resistance levels and may now look to target the 57,500–58,000 range, provided the current momentum holds.

As of now, the banking index continues to reflect strong investor appetite and the sector’s pivotal role in India’s economic recovery. With corporate demand picking up and asset quality pressures receding, banks appear well-positioned to capitalise on the current growth cycle.