Bank Nifty Hits Record, But Is This Rally Justified? Analyst On NBFCs, PSUs & Private Banks

With Bank Nifty scaling record highs on the back of strong jump from HDFC Bank, ICICI Bank, and others, where do NBFCs and private banks stand now? On this episode of Market Today on Business Today TV, Sharad Avasthi, Head of Research (PCG) at SMIFS, shares his outlook on the sector and breaks down whether the rally still has legs. He believes NBFCs are far from overheated and could outperform going forward, especially with the return of liquidity and easing MSME stress. Stocks like Poonawalla Fincorp, L&T Finance, and M&M Finance are well-positioned for strong gains. Among gold loan companies, Manappuram looks attractive at current valuations. In private banks, while ICICI may be near full valuation, HDFC Bank could still reach ₹2100–2150, and Axis Bank offers further potential. Interestingly, he finds PSU banks like SBI, PNB, and Canara Bank trading at compelling valuations, with room for rerating. Sharad Avasthi also cautions against expensive names like Bajaj Finance and suggests watching how consumer finance demand unfolds in the next quarter. Don’t miss this detailed breakdown of banking and NBFC trends as markets soar!