Latest news with #NiftyBankIndex
New Indian Express
3 days ago
- Business
- New Indian Express
Strong rally in markets; banking and realty lead the surge
CHENNAI: Indian equity markets experienced a significant rally today, spurred by the Reserve Bank of India's (RBI) unexpected policy measures aimed at stimulating economic growth. The RBI slashed the key repo rate by 50 basis points and reduced the Cash Reserve Ratio (CRR) by 100 basis points, injecting approximately ₹2.5 lakh crore into the banking system. This aggressive easing, coupled with a shift in the RBI's policy stance from 'accommodative' to 'neutral', boosted investor sentiment across sectors. The apex bank's bold policy actions have injected liquidity and optimism into the markets, particularly benefiting rate-sensitive sectors. Financials, real estate, and automobiles have emerged as key beneficiaries, with significant gains observed across these indices. Financials & Banking Nifty Bank Index surged to an all-time high of 56,433, marking a 1.2% gain. Key contributors included HDFC Bank, State Bank of India (SBI), and Axis Bank, each rising over 2%. Nifty PSU Bank Index also reached new highs, reflecting strong performance in public sector banks. Financial services stocks such as Shriram Finance led the rally with a 4% increase, indicating robust investor confidence in the sector.
Time of India
22-04-2025
- Business
- Time of India
Nifty Bank soars to new high on strong Q4 scores
Mumbai: A renewed wave of optimism lifted domestic lenders to record levels as better-than-expected March quarter results at top banks buttressed their investment case, already in focus of late on account of the preference for sectors benefiting from local prospects amid lingering uncertainty over trade tariffs. Expectations of more interest rate cuts , with the Reserve Bank of India signalling its intent to ease liquidity conditions, are also fuelling investor appetite for banks of late. The NSE's Nifty Bank index surged 1.9% on Monday, boosting the gauge to record highs, scaling the highs last made on September 26. The broader NSE Nifty surged 1.15% to 24,125.55 points while the BSE Sensex was up 1.09% to 79,408.50 points. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo AU Small Finance Bank was the top gainer on the Nifty Bank Index, up 7.3%, followed by IDFC First Bank and IndusInd Bank , which gained 5.8% and 4%, respectively. Investor appetite for banks got a boost after the fourth-quarter results of HDFC Bank and ICICI Bank over the weekend beat estimates. HDFC rose 1% and ICICI was up 0.1%. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Agencies 'Rally Driven by Rate Cuts' "Banks did well on Monday, because of strong results from large private banks and the absence of negative surprises in terms of asset quality," said Ramesh Mantri, chief investment officer at WhiteOak Capital AMC. Private lenders are back on investors' radar as part of a broader shift in their interest in domestic economy-facing sectors, which are perceived to be relatively insulated from the effects of US President Donald Trump's tariffs on the global economy. Live Events "While slower economic growth continues to be a concern, the banking sector is in a better position compared to many others during global uncertainty, since it mainly serves the domestic market," said Mantri. Since April 7, when the market recovery started, the Bank Nifty index has gained nearly 11% as against the 9% upmove in the Nifty. The bounce in bank shares was instrumental in lifting the key indices because the weight of shares of lenders on these benchmarks is the highest at nearly 30%. So far in 2025, the Nifty Bank index has moved up 8.7%, against the Nifty's gains of 2%. "The recent rally in banking stocks can be largely attributed to the ongoing interest rate cut cycle, which has been beneficial for the sector," said Vikas Khemani, founder, Carnelian Asset Management and Advisors. "Rate cuts also tend to support credit growth within the broader economy, and we believe this move positions banks favourably for the next 12-18 months." The RBI has cut the key policy rate by a total 50 basis points this year. This is expected to ease pressure on banks' margins. Banks and non-banking finance companies (NBFCs) - mostly mid and small-sized - had been beaten down in the sell-off since late September on account of rising bad loans in the microfinance segment and other asset quality concerns. The RBI had flagged asset quality concerns for unsecured loans in December last year. Much of this has eased for now. "Most asset quality concerns in the banking sector have been addressed, and we believe the next two to three years will see a phase of leveraging that should support growth for banks," said Anil Rego, founder and fund manager at Right Horizons Portfolio Management Services.
Hindustan Times
21-04-2025
- Business
- Hindustan Times
ICICI, HDFC banks share prices hit fresh records post March quarter earnings
Shares of HDFC Bank Ltd. and ICICI Bank Ltd. surged to record highs on Monday after both posted stronger-than-expected earnings over the weekend. Brokerage firm Motilal Oswal Financial Services Ltd. revised its FY26 earnings estimate for HDFC Bank up by 3% and raised ICICI Bank's price target by 3% to ₹1,650. Axis Bank Ltd., India's third-largest private lender, is set to report its earnings on Thursday. Meanwhile, the implied volatility spread between the Nifty Bank Index and the broader Nifty 50 Index has narrowed to levels last seen in early April, reflecting improved trader sentiment towards banking stocks. As of Thursday's close, the April 55,000-rupee call option had the highest open interest, indicating further potential upside for the bank index. On Monday, the Nifty Bank Index jumped as much as 1.9%, crossing the previous peak set in September. Since April 2, when the US announced reciprocal tariffs, the index has risen over 7%, outpacing the Nifty 50's more than 3% gain, according to Bloomberg data. Analysts believe Indian banks remain largely insulated from global trade tensions due to their limited international exposure. They also point to solid fundamentals across most lenders. 'Overall outlook for banking stocks is positive,' Sandip Sabharwal, founder of research house told Bloomberg. 'Most banks have significant capital adequacy ratios, good additional provisions as buffers as well as accelerating growth prospects as monetary policy eases and liquidity improves,' he added. ICICI Bank shares rose over 2% on Monday morning, day after the lender posted a 15.7% rise in consolidated net profit for the March quarter, reaching ₹13,502 crore. The stock touched a 52-week high of ₹1,437 on the BSE, gaining 2.15%, and similarly climbed 2.08% to ₹1,436 on the NSE. On a standalone basis, ICICI Bank posted a net profit of ₹12,630 crore for Q4 FY25, an 18% increase from ₹10,708 crore in the same quarter last year. Core net interest income rose 11% to ₹21,193 crore, and non-interest income (excluding treasury) grew 18.4% to ₹7,021 crore. The bank also improved its asset quality, with gross NPAs falling to 1.67% in March 2025 from 1.96% in December 2024. Shares of HDFC Bank climbed more than 2% on Monday, hitting a one-year high of ₹1,950 on both the BSE and NSE. This came after the bank reported a 7% year-on-year increase in consolidated net profit for the March quarter, reaching ₹18,835 crore. On a standalone basis, net profit stood at ₹17,616 crore for the quarter, up from ₹16,512 crore in the same period last year. Net interest income rose 10.3% to ₹32,070 crore, driven by a slight rise in net interest margin to 3.5% and a 5.4% growth in gross advances. However, the bank flagged concerns around pricing pressure in home and corporate loans, affecting loan growth. CFO Srinivasan Vaidyanathan noted that HDFC Bank chose to moderate loan expansion and instead prioritise deposits, which grew over 15% during the fiscal. (With inputs from agencies)
