Nifty Bank Hits All-Time High: Who’s riding the banking rally?

Nifty Bank Hits All-Time High: Nifty Bank on Friday surged to a record high of 57,651.30, surpassing its previous peak of 57,628.40 touched on July 2, 2025. The 12-stock banking index, led by HDFC Bank, ICICI Bank, and Axis Bank, rose 229 points in early trading, reflecting strong buying momentum in the financial sector.

The index’s strong move came almost exactly in line with Zee Business Managing Editor Anil Singhvi’s morning projection, where he said Nifty Bank could move into a “blue-sky zone” above the 57,700 mark.

Earlier in the day, Singhvi had highlighted a key resistance area at 57,525–57,650, suggesting that a breakout beyond these levels could open the gates for fresh highs in the banking index. The prediction came true within hours as heavyweights HDFC Bank, ICICI Bank, and Axis Bank powered the rally.

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The banking index has clearly outperformed the broader Nifty in 2025, posting gains of over 13 per cent compared with less than 9 per cent for the headline index. In contrast, Nifty IT remains the laggard, down about 19 per cent year-to-date.

Meanwhile, the broader Nifty touched a fresh 52-week high above 25,700, though it remains roughly 570 points below its all-time peak of 26,277 reached on September 27, 2024.

Banking stocks in focus

Among major contributors, HDFC Bank, which carries the highest weight in the index, has gained around 13 per cent so far this year, slightly ahead of ICICI Bank’s 11 per cent rise.

Market sentiment upbeat ahead of Diwali

After a weak start, the market quickly picked up pace, with Nifty crossing a one-year high and Sensex climbing nearly 600 points to 84,000, marking its strongest four-month performance. As the last trading session before Diwali, today’s rally was seen as a festive cheer for investors ahead of Muhurat trading on October 21.

Other frontline performers boosting the indices included Asian Paints, Mahindra & Mahindra, Nestlé, Axis Bank, and Titan, reflecting broad-based buying. Nifty Bank has climbed over 10,000 points since the March 2025 lows, highlighting renewed strength in the financial sector.

Why Nifty Bank is rallying

The historic rally in Nifty Bank is being driven by multiple factors. Institutional investors are showing renewed interest in private banks, while anticipation around quarterly results of HDFC Bank and ICICI Bank has lifted sentiment. Signs of improvement in net interest margins (NIMs) and strong fundamentals in public sector banks like SBI have also supported the rally. Additionally, clearing of provisions by private lenders has increased institutional confidence in the sector.