Banking stocks took a beating on April 7, 2025, as the Bank Nifty index fell sharply, dragged down by heavyweights across both private and public sector banks. The index was weighed down by broad-based profit booking and subdued sentiment, particularly in frontline stocks such as Kotak Mahindra Bank, Axis Bank, Canara Bank, HDFC Bank, and ICICI Bank.
These five banks emerged as the top losers of the day, contributing significantly to the decline in the Bank Nifty index, which closed at 49,860.10, down from its previous close of 51,502.70.
Kotak Mahindra Bank led the slide in the banking pack with a decline of over 4%. The stock had seen a strong rally in recent weeks, rising over 10% in the last 30 days. However, selling pressure on Monday erased a large portion of those gains, bringing the price closer to ₹2,000, a key psychological level.
Axis Bank saw a sharp sell-off as well, declining over 3.6% intraday. The bank had shown modest gains recently, but Monday’s fall signals renewed caution among investors, possibly ahead of upcoming earnings or macroeconomic data.
Public sector lender Canara Bank also fell over 3%, though the decline came on strong volume. Despite a positive 30-day return, the stock remains significantly lower on a year-on-year basis, having shed more than 85% of its value in the past 12 months.
HDFC Bank also slipped more than 3% as the broader sector faced heavy selling. The bank has remained one of the strongest performers in the banking space over the past year, but the session’s fall indicates short-term caution.
ICICI Bank rounded off the list of top losers with a 3.09% drop. Like Kotak and HDFC, the stock had witnessed a robust 30-day rally, which may have triggered profit-booking at higher levels.
The correction across the top banking stocks pulled down the overall Bank Nifty index. Most of these banks had rallied in the weeks prior, and the sharp intraday declines on April 7 likely reflect a combination of profit-taking and global caution.
Despite Monday’s fall, the long-term trend for many of these banks remains intact, with strong fundamentals, rising credit growth, and stable asset quality. Market participants will now closely watch upcoming earnings reports and macroeconomic cues for further direction.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 7, 2025, 9:17 PM IST
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