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News Topical, Digital Desk : The banking sector has done wonders in the Indian stock market. The NIFTY BANK index has set a new record and the shares of big banks like HDFC Bank, AU Small Finance Bank have reached their all-time high. There are many big reasons behind this - RBI's policy, huge amount received by HDFC Bank and rapidly increasing loan demand.
What is the reason for the rise?
RBI cut rates and reduced CRR-Recently the Reserve Bank of India (RBI) has cut the repo rate and CRR. This will increase liquidity in the banking system and boost loan growth. This is the reason why investors' confidence in banking stocks has increased further.
| Name of the Bank | YTD Return (%) |
|---|---|
| AU Small Finance Bank | +46% |
| Kotak Mahindra Bank | +23% |
| Axis Bank | +15% |
| HDFC Bank | +13% |
| ICICI Bank | +12% |
| NIFTY BANK ( Index) | +12% |
After the ceasefire between Israel and Iran, the global markets are showing a risk-taking trend i.e. 'risk-on mode'.
If there is any positive development between India and America, it will be a signal of growth for the market, otherwise the uptrend may be halted." Nifty has formed an inside day pattern with a gain of 200 points on Thursday, which is creating the possibility of a big move. The next resistance is between 25,310–25,360 and 25,500 should also be monitored. The support zone is 24,960–25,010, below which 24,800 is considered a strong defense. HDFC Bank will get ₹10,000 crore from HDB FIN IPO- The IPO of HDFC Bank's subsidiary HDB Financial Services has come with a great response. This will provide HDFC Bank with a capital of ₹10,000 crore, which will strengthen the bank's capital base and liquidity coverage.
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