Bank Nifty Hits Record 57,076; HDFC Bank, Axis Lead Rally Amid Liquidity Surge

With RBI’s aggressive monetary easing and macroeconomic tailwinds, Bank Nifty scales new highs as private banks power the rally; analysts eye 58,000 mark in coming weeks.

June 26, 2025 | India’s Bank Nifty index touched a record high of 57,076.95 on June 26, driven by robust gains in major private banks like HDFC Bank and Axis Bank. This marks a milestone moment for India’s financial markets, bolstered by strong macroeconomic indicators and liquidity infusion by the Reserve Bank of India (RBI).

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HDFC Bank surged to a new all-time high of ₹2,008, while Axis Bank climbed over 1.5% to trade around ₹1,231.60. The surge lifted benchmark indices, with Nifty Financial Services also hitting a record high of 27,144.

HDFC Bank’s rally also coincides with rising investor interest in the upcoming HDB Financial Services IPO worth ₹12,500 crore, and a dividend record date set for June 27.

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🔍 Analysts See More Upside Ahead

Experts remain bullish on the trajectory of the index. Chandan Taparia of Motilal Oswal projected that Bank Nifty could breach 58,000 in the next 2–3 weeks, supported by strong levels above 56,250.

Ajay Bagga, an independent analyst, attributed the rally to a combination of favorable macroeconomic factors, including falling inflation, improved purchasing power from income tax relief, and a good monsoon forecast.

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💸 RBI’s Bold Moves Fuel the Financial Surge

The RBI’s recent measures, including three repo rate cuts totaling 100 basis points, a 100 bps CRR cut, and a $10 billion USD/INR swap, have pumped substantial liquidity into the system.

Bhavik Joshi of INVasset PMS called the Bank Nifty rally a reflection of “India’s macro transformation,” underscoring how the index symbolizes a central bank–backed growth story.

Sunny Agrawal from SBI Securities noted that HDFC Bank and ICICI Bank—which together constitute about 50% of the Bank Nifty’s weight—have been the key forces lifting the index. While credit growth is expected to rise, banks may face temporary margin pressure in the first quarter of FY26.

🏦 Broader Financial Sector Joins Rally

Apart from private banks, AU Small Finance Bank, ICICI Bank, and IndusInd Bank also posted gains. Meanwhile, ICICI Prudential, Jio Financial Services, Shriram Finance, and Bajaj Finance surged over 2% in the Nifty Financial Services index.

On the downside, public sector banks like SBI, Federal Bank, PNB, and Bank of Baroda lagged behind, showing marginal declines.

📈 Outlook

As India navigates a phase of strong credit demand, central bank support, and economic optimism, analysts expect further momentum in financial stocks. If macroeconomic conditions remain stable, Bank Nifty’s latest surge may only be the beginning of a broader bull run in India’s financial sector.

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Bank Nifty, HDFC Bank, Axis Bank, Stock Market, NSE, ICICI Bank, RBI, Repo Rate, Liquidity Injection, Indian Economy, Chandan Taparia, Bhavik Joshi, Banking Sector Rally, Dividend Record Date, Financial Services, Sensex, Nifty

News Desk