Bank Nifty Hits 58,000 as Private Banks Shine in Quarterly Results

Bank Nifty crossed the 58,000-mark on October 20, driven by a sharp rally in private banks following strong second-quarter results. The index jumped more than 500 points, or roughly 1 per cent, to hit 58,242.50, marking a fresh record high. Analysts say the next resistance level could be around 58,300 if the positive momentum continues. 

Private Banks Lead the Charge 

AU Small Finance Bank stole the spotlight, climbing nearly 8 per cent to Rs 854.10 a share. While the bank’s net profit dipped around 2 per cent year-on-year to Rs 561 crore for Q2 FY26, its net interest income rose almost 9 per cent to Rs 2,144 crore. This reflects solid growth in its core operations and steady asset performance. 

Other private lenders also recorded strong gains. Federal Bank and IDFC First Bank surged around 7 per cent each on the back of impressive quarterly results. Investors appear increasingly confident in well-managed mid-sized banks, which are playing a larger role in driving the sectoral index. 

Public Sector and Big Banks Show Mixed Moves 

Among larger banks, Punjab National Bank (PNB), Axis Bank, and Canara Bank rose more than 2 per cent each, while IndusInd Bank, State Bank of India (SBI), and Bank of Baroda gained around 2 per cent. Heavyweights Kotak Mahindra Bank and HDFC Bank moved up only marginally. 

Not all banks joined the rally. ICICI Bank shares fell over 2 per cent after reporting moderate loan growth in the second quarter. Investors seemed cautious as the lender’s credit expansion failed to meet expectations despite strong fundamentals. 

Analysts noted that the current rally is largely earnings-driven, particularly in private banks benefiting from healthy credit growth, improving margins, and operational efficiency. Smaller and mid-sized banks are increasingly influencing the index, attracting investors looking for higher returns. 

Overall, sentiment in the banking sector remains upbeat, with private lenders leading the way. The strong quarterly results are expected to sustain momentum in the near term, though analysts warn of potential profit-taking or volatility, especially among banks showing only modest gains. 

With Bank Nifty breaking past 58,000, the focus now is on whether it can hold the gains and test the next resistance at 58,300. Private bank earnings will continue to be the key driver for further movement in the index.