More Stories

Informist, Friday, Jul. 4, 2025

MUMBAI – Bank Nifty is expected to sustain its all-time high, though it may enter a phase of consolidation based on technical levels, analysts said. Stocks of private sector banks are seen performing better, nearing the release of corporate earnings for Apr-Jun, they said.

Nifty Bank hit an all-time high of 57,628.40 on Wednesday, and largely moved in the band of 56,500-57,500 in the week ended Friday. The Nifty Bank index rose 0.4% on Friday to close at 57031.90, with nine of the 12 constituents ending in the green. Shares of IDFC FIRST Bank rose 7.6% on week, after Investec upgraded the stock to 'buy', citing the bank's strong growth prospects. 

"Bank Nifty on the weekly chart has formed a small bear candle with a higher high and higher low signalling consolidation after the recent strong up move," Bajaj Broking Research said in a note Friday. "...we expect index to enter consolidation in the range 56,000-57,500 in the coming sessions. Only a move above 57,500 will open further upside towards 58,500 levels in the coming weeks."

Analysts see preference for stocks of private sector banks over their state-owned counterparts closer to reporting of June quarter earnings. Brokerage firm Macquarie said that state-owned banks are losing market share on deposits, and the brokerage expects earnings per share to decline in the current financial year and sees a sharp compression in their return on equity in the near term, according to media reports citing the note.

All the constituents of the Nifty PSU Bank surged this week after Finance Minister Nirmala Sitharaman asked the lenders to ramp up credit to maintain the FY24 growth momentum, after the Reserve Bank of India's 50-basis point rate cut in June. However, the outlook for state-owned banks remains positive due to an improvement in asset quality and decline in non-performing assets. 

Shares of IndusInd Bank will be closely tracked after India Ratings removed the stock from its rating watch with negative implications. India Ratings Ltd. affirmed its rating of 'AA+' with a negative outlook on the bank's debt instruments, the bank informed exchanges Friday. The bank's shares ended 0.2% down on week.  

The outlook for banks' bottom line for Apr-Jun is seen weak due to pressure on net interest margins, analysts said. However, the pressure due to the 75 basis points of cut in the repo rate in Apr-Jun is seen transient, as the Reserve Bank of India's staggered cut in the cash reserve ratio starting September is likely to offset this, along with a gradual fall in cost of deposits. 

"We expect double-digit NIM (net interest margin) decline for all banks under our coverage in estimates for Apr-June," Motilal Oswal Financial Services said in a report. "However, a phased reduction in deposit rates and a 100 bps CRR cut, effective from September will enhance liquidity and bring some relief to margins."

Some analysts expect a better bottom line from Kotak Mahindra Bank, after the RBI in February lifted the restrictions that it had imposed on the bank in April 2024 on issuing new credit cards and onboarding new customers digitally. Before the embargo, Kotak Mahindra Bank was adding around 88,000 credit cards a month, according to RBI data.

"Since the embargo on issuance of credit cards is revoked by RBI (Reserve Bank of India), there is more line for credit growth for Kotak (Mahindra Bank)," an analyst at a foreign brokerage said. The analyst does not expect any banks to have slippages in this quarter and said there could be a pinch in the net interest margins of most banks if not all. He also said the earnings of these banks would bottom out in this quarter and from Jul-Sept there would be improvement.

TOP HEADLINES

* Microfinance Industry Network appoints Vineet Chattree as chairperson
* Bank of Maharashtra gross advances INR 2.41 tln as of Jun 30, up 15% on year
* Bank of India MD Karnatak sees banking sector credit growth at 11-13% FY26
* CARE Ratings upgrades YES Bank infra, tier-2 bonds to 'AA-' from 'A+'
* SC refuses to entertain HDFC Bk Jagdishan's plea to quash Lilavati trust FIR
* Bombay HC sets aside INR 1.24-bln GST demand order against Niva Bupa
* CreditAccess Grameen's loans up 0.4% QoQ Jun-end post INR 6.93 bln write-off
* NFO: JM Fincl Asset Mgmt launches JM Large, Mid Cap Funds; offer opens Fri
* RBL Bank says gross advances up 9% YoY at INR 967 bln, deposits up 11%
* HDFC Bank's advances up 6.7% on year as of Jun 30, deposits up 16.2%
* Poonawalla Fincorp AUM rises sharply to INR 412.50 bln as of Jun 30
* Angel One client base up 31% on year Jun, gross client acquisition down 42%
* YES Bank's advances up 5.1% on year as on Jun 30, deposits rise 4.1%
* Bandhan Bank advances up 6.4% on year as on Jun 30, deposits up 16.1%
* AU Small Fin Bk's gross advances up 23% YoY as of Jun 30, deposits up 31%
* Bajaj Housing Finance's AUM rises 24% on year to INR 1.2 trillion as of Jun
* LIC to begin selling two new products, one rider from Fri
* Bk of Baroda's domestic loans up 12.5% as on Jun 30, domestic deposits up 8%
* Suryoday Small Finance Bank's advances up 20% as on Jun 30, deposits up 39%
* L&T Finance's retail loan book up 18% on year at INR 998 bln as of Jun 30
* Punjab & Sind Bk's gross loans up 13.9% on yr to INR 999.46 bln as on Jun 30
* Bombay High Court sets aside INR 19.02-bln GST order on ICICI Lombard
* India's FY26 GDP growth may surpass expectations, says Trust MF CIO Vora
* UCO Bank total advances rise 16.6% on year as of Jun 30, deposits up 11.6%
* Capital Small Fin Bank's advances up 16.4% as on Jun 30, deposits up 17.1%
* IDFC FIRST Bank board OKs amended invest pact with Currant Sea Investments
* NFO: Axis Services Opportunities Fund subscription opens Fri, closes Jul 18
* Fund house-wise average assets under management of MFs in Apr-Jun
* Moody's Ratings affirms EXIM Bank's Baa3 rating, stable outlook
* Godrej Ind to invest INR 7.5 bln to up capacity, eyes $1 bln revenue by 2030
* SC agrees to hear Fri HDFC Bank MD, CEO Jagdishan's plea to quash FIR
* M&M Fincl sees overall disbursements in Apr-Jun at INR 128 bln, up 1%
* HDFC Bank gets INR 98 billion via stake sale in HDB Fincl Svcs' IPO
* RBI issues directions on pre-payment charges on loans, applicable from Jan 1
* Indian Bank gross loans up 11.3% YoY as on Jun 30, deposits up 9.3%
* PNB domestic loans rise 9.7% on yr as of Jun 30, domestic deposits up 12.2%
* Rail Vikas appoints Chandan Kumar Verma as CFO effective Wednesday
* Axis Max Life Insurance investigating potential customer data breach
* IPO Alert: HDB Financial Services shares end 14% higher to issue price
* RBL Bank denies report Dubai-based Emirates NBD Bk looking to pick up stake
* SBI classifies RComm loan acct as fraud, reports Anil Ambani's name to RBI
* Microfinance may gain most from AI, machine learning advancement - RBI Rao
* Karnataka Bank appoints Raghavendra Srinivas Bhat as COO Wed
* Technical snag hits SBI's online operations; services resume from 1400 IST
* Headwinds for microfin sector to continue till Sept qtr, says India Ratings
* Tamilnad Mercantile Bank gross loans up 10.4% as on Jun 30, deposits up 9.4%
* UAE-based bank Mashreq gets approval from IFSCA to set up ops in GIFT City
* NFO: Kotak Mutual Fund seeks SEBI approval for active momentum fund
* PRESS: Dubai govt-owned Emirates NBD Bank eyes minority stake in RBL Bank
* SBI Cards gets show cause notice from CGST dept over input tax credit
* New India Co-op Bank, Saraswat Co-op Bk merger may be completed by Aug-Sept
* NFO: Subscription to Sundaram MF multi-factor fund opens Wed, closes Jul 16
* IPO Alert: HDB Financial Services shrs to list Wed; issue price INR 740/shr
* PNB waives penalty for not maintaining minimum balance in savings accounts
* Aquilo House buys 27% stake in Aavas Financiers, raises total holding to 49%
* South Indian Bank's gross advances as on Jun 30 rise 8% YoY, deposits up 9%
* Electricity futures to take off soon; MCX, NSE may thrive - SKI Cap Wadhwa
* Karur Vysya Bank inks pact with Kshema General Insurance to launch new pdt
* JM Financial completes acquisition of JM Financial Credit Solutions
* CreditAccess Grameen raises INR 25.70 bln in Apr-Jun
* Bajaj Finserv AMC expects MF industry to grow at over 18% CAGR in 2023-2030
* Karur Vysya Bank's advances up 15% YoY as of Jun 30, deposits rise 15.5%
* SMBC's proposal to buy 20% stake in YES Bank under review with CCI
* Federal Bank board approves plan to raise up to INR 60 bln via bonds
* Banking secy asks private sector banks to augment infra in rural areas
* RBI Report: Ten NBFCs may breach capital norms Mar in stress test base case
* CARE Ratings ups Aadhar Housing Fin's long-term bank facility rtg to AA+
* Abhishek Mishra appointed CFO of Can Fin Homes for 3 years, effective Monday
* RBI Report: Bank capital ratio seen above mandated level even in worst case
* RBI Report: Geopolitical stress, tariffs potential risks to fincl stability
* SEBI extends cybersecurity compliance timeline for most mkt entities by 2 mos
* RBI Report: Ten NBFCs may breach capital norms Mar in base case stress test
* AU Small Finance Bank enters into strategic partnership with LIC
* RBI project fin norms support pragmatic balance of risk, viability - Moody's
* Average returns of all mutual fund categories in week ended Jun 27
* Top, worst performing schemes in MF categories in week ended Jun 27
* ICICI Lombard General Insurance gets tax demand of INR 2.78 million
* Pvt credit's rapid leaps could change legacy guardrails fast - SBI report
* AU Small Fin Bk appoints Jagajit Prasad as non-executive independent director
* Karnataka Bank's MD and CEO Sarma, ED Sekhar Rao resign
* PRESS: Fin min urges public sector banks to list arms for better returns
* CARE ups Aptus Value Housing credit rtg to 'AA', revises outlook to stable
* GIC receives INR-904-million tax demand in Dubai for discrepancy in returns
* CARE upgrades Aadhar Housing Fin's NCD, fixed deposit rating to AA+ from AA
* JM Financial Credit Solutions to be wholly-owned subsidiary of JM Financial
* YES Bank to sell stressed assets worth INR 383.8 mln
* PRESS: Govt looking to increase cover under flagship insurance schemes
* RBI issues norms for Aadhaar-enabled payment system operators' due diligence
* IPO Alert: Credila Fincl Services files DRHP for up to INR-50-bln offer
* IPO Alert: HDB Financial offer closes, subscribed 16.7 times
* PB Fintech invests INR 100 mln in arm PB Pay
* RBI issues norms for Aadhar-enabled payment system operators' due diligence
* Rail Vikas lowest bidder for South Central Railway's INR-2.13-bln project
* Jammu and Kashmir Bank appoints Ketan Kumar Joshi as CFO, effective Fri
* Data Alert: Bank loans up 9.6% on year as of Jun 13, deposits up 10.4%
* Need to curb insurance misselling, low premiums to up coverage: Banking secy
* Equity Futures:Upside bets added in Jio Fincl as arm gets OK for broking ops
* Sitharaman asks PSU bks to lend more after 50 bps rate cut to up FY26 growth
 

Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:

End

US$1 = INR 85.3925

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Cassandra Carvalho

With inputs from Gopika Balasubramanium and Anjana Therese Antony

Edited by Deepshikha Bhardwaj

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.