Nifty Bank hits record high, rallies over 3,000 points in October

The Nifty Bank index achieved a fresh record high of 57,651 on Friday marking a substantial recovery of nearly 10,000 points from its March 11 low of 47,702. The index has risen in 12 out of the last 14 trading sessions, accumulating more than 3,000 points in October alone, which translates to over a 5% rise month-to-date, positioning October as the third-best month of the year after March and April.

The robust rally is attributed to strong business performance across most banking constituents, with double-digit year-on-year growth in both advances and deposits reported for the September quarter, combined with the index breaching key technical resistance levels.

Among individual stocks, Canara Bank has emerged as the top performer in the Nifty Bank pack, registering a 52% gain from the March 2025 lows. Other significant contributors include AU Small Finance Bank with a 46% increase, Punjab National Bank and Bank of Baroda both rising by 30%, followed by IDFC First Bank at 28%, State Bank of India at 22%, and Federal Bank, HDFC Bank, and ICICI Bank each advancing between 17% and 18%. Kotak Mahindra Bank also contributed with a 15% gain. Notably, IndusInd Bank was the only constituent to underperform, declining by 17% from its March low. The broader sector’s performance reflects sustained investor confidence and recovery momentum throughout the year to date.

The index’s October surge aligns with broader market optimism as the Nifty Bank outperformed the Sensex in recent sessions, aided by strong trading volumes and improved financial metrics across constituents. Many banks reported advances and deposit growth in double digits for the September quarter, supporting positive sentiment.

The financial sector’s resilience and technical breakout above previous resistance levels have solidified an upward outlook for the banking index as 2025 progresses, keeping stakeholders attentive to future earnings reports and regulatory developments. Key competitors within the index, such as HDFC Bank, ICICI Bank, State Bank of India, and Kotak Mahindra Bank, continue to shape the sector’s trajectory, while market participants monitor Canara Bank’s leadership and IndusInd Bank’s divergence closely.