Strong rise in Nifty Bank, ICICI Bank - HDFC Bank's new 52-Week High, these are the biggest reasons:

The Indian stock market is witnessing a tremendous rise in the last trading session of the week. Nifty-Sensex opened softly on Thursday after sluggish signals from global markets, but later saw a great recovery from the lower levels. Despite the uncertainty about US tariff policies and the slowdown in the global economy, there is a great buying in financial stocks. Along with banking, NBFCs are also witnessing a tremendous rise. L&T Finance, SBI Cad and Muthoot Finance were seen trading with gains of 2-3%.

By the afternoon session on Thursday, the total market capitalization of all the companies listed on BSE has increased by about Rs 4 lakh crore to about Rs 419 lakh crore. This boom in banking stocks can be gauged from the fact that Nifty Bank, which opened in the red mark on Thursday, April 17, is now very close to the 52-week high.

On Thursday, Nifty Bank was seen trading with a gain of more than 2%. The current peak of Nifty Bank is at the level of 54,467.35, which the index made on 26 September 2024. Now after 137 sessions, Nifty Bank is once again preparing to reach a new peak. Strong buying in banking stocks Out of all the 12 stocks of the Nifty Bank index, 11 stocks were seen trading in the green. Only IDFC First Bank was left out of this index, which saw a decline of one and a quarter percent. The remaining 11 stocks are seeing a great boom. ICICI Bank, SBI, Kotak Mahindra Bank, Axis Bank, HDFC Bank and IndusInd Bank were the top contributors to the Nifty Bank rally. ICICI Bank and HDFC Bank have reached new 52-week peaks.

stock	Acceleration (%)
Kotak Mahindra Bank	12.38
HDFC Bank	6.44
ICICI Bank	4.63
Federal Bank	0.83

Nifty Bank: From peak to peak laggards

stock	Decline (%)
IndusInd Bank	-45
AU Small Finance Bank	-21
IDFC First Bank	-14
Canara Bank	-13
Axis Bank	-8
PNB	-8
SBI	-3
Bank of Baroda	-1

Rise in major banking stocks: Major banks included in the Nifty Bank Index such as IndusInd Bank, Axis Bank and IDFC First Bank are also seeing a rise. IndusInd Bank continues to rise after the external audit report reported less than expected impact due to irregularities in the derivative portfolio.

Many brokerage firms estimate that ICICI Bank will report double digit profits during the fourth quarter (January-March). The bank's interest income will remain strong and margins are also expected to remain stable.

Control of inflation, repo rate cut and monsoon: RBI has predicted inflation to remain within the target range along with a cut in the repo rate in the recent credit policy. Apart from this, the Meteorological Department has predicted a slightly better monsoon than normal, which has led to a boom in the banking sector. Reduction in repo rate will give further boost to growth.