Bank Nifty skyrockets nearly 950 pts as private lenders outperform; AU Small, Kotak, Axis Bank, HDFC Bank, ICICI Bank top bulls

5 Jan 2022 , 02:45 PM

Banking stocks witnessed a strong buying movement on Wednesday's trading session as lenders announced their provisional data for the quarter of December 2021 (Q3FY22). The sector is in focus ahead of major Q3 earnings with index heavyweight HDFC Bank becoming the first to present its financial performance.

Bank Nifty has skyrocketed nearly 1,000 points so far today and even was racing towards the 37,900-mark. All stocks listed on Bank Nifty were on a bullish tone except for subdued performance in IndusInd Bank.

At around 2.28 pm, Bank Nifty was trading at 37,786.05 up by 945.90 points or 2.6%. The index has touched an intraday high of 37,821.75.

IndusInd Bank was the only stock in red but the performance was flat.

AU Small Finance Bank was the top gainer soaring by nearly 7% followed by Kotak Bank surging nearly 4%.

Heavyweights ICICI Bank, Axis Bank and HDFC Bank skyrocketed by nearly 3% each. SBI rallied over 2%.

HDFC Bank is set to present its Q3 results on January 15, while ICICI Bank is lined up on January 22 and Axis Bank's earnings on January 24.

Federal Bank advanced 1.6%, while RBL Bank and PNB zoomed over 1% each. Bandhan Bank and IDFC First Bank jumped nearly 1%.

Banks have witnessed a healthy rise in their loan books and deposits as per their provisional data during Q3FY22. The liquidity position also remains strong. Furthermore, in Q3, investors expect further improvement in asset quality, while stable interest income and lower provisions which could boost their bottom-line front.

RBI on Tuesday announced that lenders State Bank of India (SBI), HDFC Bank and ICICI Bank continue to be identified as Domestic Systemically Important Banks (D-SIBs), under the same bucketing structure as in the 2020 list of D-SIBs. Under the additional Common Equity Tier-1 requirement as a percentage of Risk-Weighted Assets (RWAs) - SBI holds 0.60% weightage while HDFC Bank and ICICI Bank has 0.20% weightage each.