Bank Stocks Outlook
Bk Nifty may near record high; earnings end on rosy note
This story was originally published at 22:06 IST on 7 November 2025
Register to read our real-time news.Informist, Friday, Nov 7, 2025
By Aaryan Khanna
NEW DELHI - The Nifty Bank index is expected to trade on a positive note next week and may near its record high of 58577.5 points, analysts said. Latest data from the Reserve Bank of India showed bank loans were up 11.5% on year as on Oct. 17, recovering from a fall to single-digit growth a few months ago.
"Financials will be in focus – the sector has done well in the festival season uniformly, unlike auto which had a mixed outcome. Loan growth has also been rising in recent weeks," Anand Dama, head of BFSI Research at Emkay Global Financial Services Ltd. "This is often a precursor for the rest of the economy to also start doing well."
The Nifty Bank index rose 0.2% this week and closed at 57876.80 points on Friday, with its constituents ending on a mixed note.
The positive sentiment is likely to continue for the Nifty Bank index as long as it trades above the 57200-57500 point range, Kotak Securities said in a note.
All large banks have already declared their earnings for the September quarter, and no major earnings remain. State Bank of India declared its earnings on Tuesday, posting a 10% on year rise in net profit at INR 201.60 billion for Jul-Sept. The country's largest lender needed the help of a one-time gain from its stake sale in YES Bank to beat analyst estimates, but its loan growth outpaced the industry.
Index heavyweights such as SBI and Bank of Baroda paced the index this week, with Finance Minister Nirmala Sitharaman confirming that work on the further amalgamation of state-owned banks has begun. Kotak Mahindra Bank was the biggest loser among major banks on the index for the second straight week, falling 0.7% this week.
"On the higher (end), key resistance is placed at recent all-time high of 58577. While a close below 57300 will open downside towards the key support area of 56800–56500," Bajaj Broking said in a note. "Overall, the outlook remains positive, and current consolidation should be viewed as buying opportunities within these support areas. PSU (State-owned) banking stocks to extend the recent outperformance."
TOP HEADLINES
* Central Bank to buy Future group's remaining stake in Generali insurance cos
* Tamilnad Mercantile Bk to cut 3-mo MCLR 10 bps, up 6-mo MCLR 5 bps from Fri
* Earnings Review: Suryoday Small Fin Bk PAT down 33% YoY on rise in expenses
* Growth of banking sector must not be at cost of risks, says banking secy
* Trade fragmentation could have impact on banking, fin sector, says SBI Setty
* Govt has begun work on PSU banks' amalgamation, says Sitharaman
* SBI to sell 6.3% stake in SBI Funds Mgmt via IPO; JV partner to sell 3.7%
* Burden of following regulations should be on cos, says banking secretary
* Earnings Review: CSB Bank Q2 PAT up sharply on higher interest, total income
* Emirates NBD Bank's open offer for RBL Bank shares to begin on Dec 12
* YES Securities sees CSB Bank PAT falling 15% YoY, NII slowing down in Q2
* Oct-Mar corporate credit growth should be in double digits, says SBI Setty
* SBI Jul-Sept treasury income halves QoQ, likely on rise in bond yields
* Earnings Review: SBI Q2 PAT beats view on one-time boost from YES Bk divest
* Earnings Review: Strong income, fall in provisions boost City Union Bk's PAT
* Earnings Outlook: Lower NIM, higher cost of funds to dent SBI's Jul-Sept PAT
* Bank of Baroda targeting 18-20% growth in retail book FY26, says mgmt
* PNB cuts MCLR by 5 bps across tenures from Sat; keeps base rate unch
* Analyst Concall: Made INR 4 bln provision for ECL adoption, says Bk of Baroda
* Earnings Review: Wholesale banking ops pull down Bank of Baroda Q2 PAT
* Rajeev Yadav steps down as deputy CEO of AU Small Fin Bank, effective Fri
* Earnings Review: Equitas Small Fin Bk Q2 PAT surges on low base; loss in H1
Following are the resistance and support levels for the sector's key stocks for next week, as per calculations by Informist based on their prices on the National Stock Exchange:
| Company | Price | Week-on-Week Change in % | Resistance | Support |
| AU Small Finance Bank | 908.7 | 3.50 | 935.30 | 857.50 |
| Axis Bank | 1,222.80 | (-)0.80 | 1,234.70 | 1,211.10 |
| Bank of Baroda | 289.05 | 3.80 | 295.20 | 280.00 |
| Canara Bank | 140.67 | 2.70 | 144.40 | 134.70 |
| Federal Bank | 237.26 | 0.30 | 241.50 | 230.30 |
| HDFC Bank | 982.30 | (-)0.50 | 990.80 | 970.50 |
| ICICI Bank | 1,343.00 | (-)0.20 | 1,361.00 | 1,309.60 |
| IDFC FIRST Bank | 81.47 | (-)0.40 | 83.70 | 77.60 |
| IndusInd Bank | 797.25 | 0.30 | 815.60 | 769.90 |
| Kotak Mahindra Bank | 2,088.30 | (-)0.70 | 2,122.40 | 2,042.20 |
| Punjab National Bank | 122.38 | (-)0.40 | 125.50 | 117.30 |
| State Bank of India | 955.85 | 2.00 | 975.80 | 934.10 |
| Nifty Bank | 57876.80 | 0.20 | 58522.20 | 56835.20 |
| Nifty 50 | 25492.30 | (-)0.90 | 25686.80 | 25221.20 |
| S&P BSE Sensex | 83216.28 | (-)0.90 | 83811.60 | 82373.30 |
End
Edited by Vandana Hingorani
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