On June 26, 2025, the Bank Nifty index surged to an all-time high of 57,076.95, driven by a powerful rally in private banking stocks. Among the top contributors were HDFC Bank and Axis Bank, both of which recorded over 1% gains during the trading session.

This rally marks a significant milestone in the Indian banking sector and reflects rising investor confidence in large-cap private banks amid improving financial conditions, ongoing IPO interest, and strong institutional demand.

Top Performers: HDFC Bank and Axis Bank

HDFC Bank, India’s largest private lender by market cap, saw its share price hit a record high of ₹2,008 apiece. This marks the third straight session of gains for the stock, supported by strong interest in its subsidiary, HDB Financial Services, which is preparing for a ₹12,500 crore IPO. The upcoming IPO is attracting attention from both retail and institutional investors, boosting HDFC Bank’s stock sentiment.

Additionally, June 27 is the record date set by HDFC Bank to determine shareholders’ eligibility for dividend distribution. The stock rally ahead of this record date suggests investors are positioning themselves to receive dividends, adding further buying interest.

Axis Bank was another top gainer, with its shares rising over 1.5% to ₹1,231.60 apiece. Backed by positive earnings expectations and a stable asset quality outlook, Axis Bank has consistently been one of the key performers in the Nifty Bank index.

Other Private Banks See Uptrend

Other private banking stocks also contributed to the rally:

• AU Small Finance Bank traded nearly 1% higher, supported by consistent earnings growth.

• ICICI Bank, one of the most stable performers in the sector, also saw about a 1% gain.

• IndusInd Bank and Kotak Mahindra Bank ended the day with marginal gains, indicating broad-based interest in private sector lenders.

These gains reflect positive market sentiment towards private banking, especially with economic indicators such as credit growth and liquidity metrics showing resilience.

Public Sector Banks Underperform

Contrary to the uptrend, several public sector banks (PSBs) ended the session with marginal losses. Notable laggards included:

• State Bank of India (SBI)

• Federal Bank

• Bank of Baroda (BoB)

• Canara Bank

• Punjab National Bank (PNB)

• IDFC First Bank

These banks were seen trading in the red, albeit with minor losses. The divergence between private and public sector banks suggests that investor preference is currently skewed towards private players, which are perceived to have better credit quality, asset management, and digital infrastructure.

Overall Market Impact

The rally in Bank Nifty also lifted the broader benchmark indices, with Nifty 50 and Sensex both trading higher, primarily due to the heavyweight contribution from HDFC Bank and Axis Bank. As financials carry significant weight in both indices, any sharp move in these stocks tends to influence overall market direction.

This movement is also backed by renewed institutional buying, which has picked up pace after a relatively muted start to June. Investors are betting on strong Q1FY26 earnings for the banking sector, supported by improved net interest margins (NIMs) and reduced gross non-performing assets (GNPA).

Market Sentiment and Future Outlook

The positive trend in private bank stocks appears set to continue, with investors eyeing:

• The HDB Financial Services IPO

• Upcoming quarterly results for the banking sector

• Expected policy stability post-election

• Likely status quo on interest rates by the RBI

Analysts also believe that HDFC Bank's re-rating is underway, driven by the IPO buzz, dividend announcement, and favorable sectoral tailwinds.

As per technical charts, Bank Nifty breaking above the 57,000 level could now see support around 56,400–56,500 zones, with resistance shifting to 57,300–57,500 levels. A sustained move above 57,000 could potentially open room for fresh record highs in the coming sessions.

Conclusion

The record high in Bank Nifty at 57,076.95 underscores the strength in India’s private banking space, with HDFC Bank and Axis Bank leading the charge. While PSU banks lagged, the broader investor sentiment remains bullish on large private lenders, especially with positive developments like IPOs, dividends, and strong fundamentals.

With institutional flows, favorable macros, and strategic events lined up, the banking sector is likely to continue being a market outperformer in the near term. Investors are advised to track upcoming results, RBI policy announcements, and sectoral trends closely to ride the momentum effectively.

The Upcoming IPOs in this week and coming weeks are Crizac, Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Adcounty Media India, Marc Loire Fashions, Neetu Yoshi.

The Current active IPO are Moving Media Entertainment, Valencia India, PRO FX Tech, Ace Alpha Tech, Indogulf Cropsciences, Suntech Infra Solutions, Rama Telecom, Supertech EV, Sambhav Steel Tubes, HDB Financials, Abram Food, Shri Hare-Krishna Sponge Iron, Icon Facilitators, Globe Civil Projects, Ellenbarrie Indutrial Gases, Kalpataru, AJC Jewel.

The Closed IPOs are Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Mayasheel Ventures.

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