Bank stocks create history, index surges past 55,200 for the first time; ICICI, HDFC bank in focus

​India’s banking index hit a historic milestone on April 21, as the Bank Nifty surged over 1,000 points to a new all-time high of 55,291.05, propelled by upbeat Q4 earnings from top lenders and broader bullish sentiment across financials.

The rally came as benchmark indices extended their winning streak to a fifth day. The Sensex jumped 707 points intraday to 79,260.64, and the Nifty 50 crossed 24,000 for the first time, closing in on key resistance at 24,050.

HDFC Bank, ICICI Bank at record highs post Q4 show

HDFC Bank and ICICI Bank led the upsurge after reporting strong March quarter numbers. Both counters hit fresh record highs, with Yes Bank too jumping over 7 per cent on robust performance and asset quality improvement.

According to analysts, strong loan growth and lower provisioning boosted profitability, making banking stocks the biggest contributors to Nifty 50’s gains on the day.

Banking index confirms breakout, PSU banks extend rally

Bank Nifty’s breakout above previous resistance zones confirms renewed strength, with both PSU and private banks participating. Technical analysts noted an Inverted Head and Shoulders breakout in stocks like Canara Bank and SBI, indicating potential for further upside.

Broader momentum supports uptrend

Nifty Midcap 100 and Smallcap 100 indices also gained over 1.5 per cent, reinforcing the strength in broader markets. Realty stocks like Lodha and Prestige Estate also showed bullish setups, hinting at wider sectoral participation.

Expert outlook: Buy on dips, stay long on financials

"Even though the global economic scenario is mired in uncertainty, India appears relatively resilient. India is the only large economy which can grow at 6% even in a slowing global economy. This, along with the declining dollar, has the potential to attract more FPI inflows into India in the short run. The Q4 results of HDFC Bank and ICICI Bank have the potential to take Bank Nifty to all-time high. The focus of the FIIs will be the domestic consumption themes like financials, telecom, aviation, hotels, select autos, real estate, cement and health care. Growth stocks in the digital space also have the potential to move up. IT will continue to be under pressure since the growth outlook for the sector is bleak due to the expected sharp slowdown in the US economy. 

The possibility of India striking a deal with the US in the next few months is being perceived by the market as positive. Viewed from the perspective of the short-term market construct it is Advantage India" said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

With macro tailwinds like stable inflation, possible rate cuts, and resilient domestic growth, analysts expect banking and financials to remain at the core of India’s equity bull run.