Mumbai: The Bank Nifty index reached a new record high on Monday, spurred by a significant rally in private bank stocks following impressive second-quarter results. The index rose by more than 500 points, roughly 1 percent, to hit 58,242.50 during the trading session. AU Small Finance Bank led the way, surging nearly 8 percent to Rs 854.10 per share. Despite a 2 percent year-on-year decline in net profit for the September quarter to Rs 561 crore, the bank’s net interest income increased by nearly 9 percent to Rs 2,144 crore, enhancing investor confidence. Federal Bank and IDFC First Bank shares also climbed around 7 percent each after announcing strong earnings for Q2 FY26.
Other notable gainers included Punjab National Bank (PNB), Axis Bank, and Canara Bank, all advancing over 2 percent, while IndusInd Bank, State Bank of India (SBI), and Bank of Baroda saw nearly 2 percent gains. Major players such as Kotak Mahindra Bank and HDFC Bank also experienced slight increases. Conversely, ICICI Bank shares fell by more than 2 percent following the lender’s moderate loan growth in the second quarter of FY26. Analysts pointed to widespread strength across both private and public sector banks as the reason for the rally, noting that the banking index reached a new peak thanks to strong sector-wide participation.
Experts suggested that the next targets for Bank Nifty are 58,500 and 60,000, with support levels at 56,500 and 55,800 in the event of profit-taking. They also indicated that 57,300–57,000 may serve as a crucial support zone for the index, while resistance is anticipated around 58,300–58,500.
