Bank Nifty Hits 55,200; ICICI, HDFC Bank in the Fray

Bank Nifty scaled to its all-time-high in the early trade on April 21 on the back of strong performance from IDFC First Bank, Axis Bank, and AU Small Finance Bank.

Bank Nifty touched 55,200-mark for the first time ever after ICICI Bank and HDFC Bank reported strong quarterly earnings. As of 9:40 am, the index was trading at 55,187.50, up by 1.5%.

In one month, the banking index surged by 9%, leaving the Nifty 50 index behind, which soared by 2.5% in the corresponding period.

The rally in banking stocks can be attributed to stable asset quality, attractive valuations and expectations of more rate cuts by the RBI.

Additionally, investors are pooling their money into home-grown sectors and stocks, including banking and consumption amid heightened volatility in the global economy.

How did blue-chip banking companies perform?

Shares of HDFC Bank soared after the banking company reported its Q4 earnings for FY25. HDFC Bank posted a net profit of ₹17,616 crore in Q4FY25, up 6.7% YoY. On a quarterly basis, net profit soared by 5.3%.

ICICI Bank shares surged by 2% after the country’s second-largest private lender reported strong numbers in Q4FY25. It reported a net profit of ₹12,629.58 crore, up 18% YoY. On a sequential basis, net profit soared by 7.1%. Brokerages upgraded the target price of the stock. Motilal Oswal noted, “Seldom does a bank of the size of ICICI Bank surprise with its operating performance the way this bank has done, that too amid a volatile macro environment, elevated competition for deposits, and ongoing normalization in asset quality.”

Technical overview

Last week, Bank Nifty surged by 6% and formed a bullish candle on the weekly chart. Support levels have been pegged at 53,500-53,100. On the upside, the index can touch at 54,500-55,000 and further surge to 55,300.