Banking stocks recorded significant gains on Monday, March 24, 2025, propelling the Nifty Bank index into the green territory for the eighth consecutive session.
The index rose by 2% to reach 51,621 in morning trade, marking its highest level since early January when it last crossed the 51,500-mark.
The rally comes amid a broader uptrend in the market, with several banking stocks hitting multi-year highs.
Kotak Mahindra Bank Leads Gains, Appoints New CTO
Kotak Mahindra Bank emerged as the top gainer on the Nifty Bank index, with its shares jumping over 3% to trade at nearly ₹2,151 apiece. This is the stock’s highest level in three years.
The surge follows the bank’s announcement of key leadership appointments, including Bhavnish Lathia as its new Chief Technology Officer (CTO). Kotak Mahindra Bank is also the top gainer on both the Sensex and Nifty 50 indices.
Canara Bank, PNB Show Strong Gains
Canara Bank and Punjab National Bank (PNB) also witnessed strong gains, with their shares rising over 2.6% each. Canara Bank shares were trading at ₹89.85 apiece, This implies an upside potential of nearly 11% from its previous closing price.
The stock has shown a strong recovery after hitting a 52-week low of Rs 78.60 on March 3. Meanwhile, PNB shares reached a one-month high of ₹95.58 apiece.
Axis Bank, HDFC Bank See Significant Gains
Heavyweight Axis Bank shares climbed over 2% to trade at ₹1,094 apiece, their highest level so far in 2025.
Other major gainers included Federal Bank, IDFC First Bank, and Bank of Baroda, each trading over 2% higher. The rally in banking stocks reflects renewed investor confidence in the sector amid improving market sentiment.
IndusInd Bank Bucks the Trend Amid Volatility
In contrast, IndusInd Bank shares bucked the trend, trading marginally lower at ₹686 apiece. The stock has experienced significant volatility in recent weeks following the bank’s disclosure of accounting lapses in its derivatives portfolio.
FIIs Activity
The recent rally in bank stocks coincides with foreign portfolio investors (FPIs) actively rebalancing their portfolios. While FPIs have been reducing their exposure to sectors like IT and FMCG due to global economic uncertainties, financials continue to be a preferred choice, accounting for nearly one-third of their total investments in Indian equities.
On Friday, March 21, 2025, foreign institutional investors (FIIs) demonstrated strong activity in the markets. They purchased equities worth ₹7,470.30 crores in the cash markets, signalling renewed confidence. Additionally, FIIs added long positions worth ₹2,419.03 crore in index options and ₹1,187.81 crore in stock options, reflecting a bullish outlook on the broader market and specific stocks.
Conclusion
The Nifty Bank index’s sustained upward movement highlights the resilience of the banking sector, with key players like Kotak Mahindra Bank, Canara Bank, and Axis Bank leading the charge.
While most banking stocks are riding the wave of optimism, IndusInd Bank’s underperformance serves as a reminder of the sector’s inherent volatility.
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