Bank Nifty tops 760 points on broad-based buying ahead of Budget FY23; IndusInd, ICICI Bank, Axis Bank, HDFC Bank, AU Bank lead the rally

1 Feb 2022 , 10:35 AM

Banking stocks witnessed healthy gains on Tuesday trading session. Heavyweights Kotak Bank, HDFC Bank, AU Bank led to drive the index on both benchmarks Sensex and Nifty.  A broad-based buying was recorded on the index with the Union  Budget FY23 in focus today.

The banking and financial sector has made significant achievements in the ongoing pandemic especially in terms of digital boost. Currently, in the sector, divestment of stake in two public sector banks and operationalisation of the Development Financial Institutions has taken rounds of discussion and can be expected to be in focus during this Union Budget 2022-23. 

The overall market breadth is strong as investors expect some major outcomes from the Budget session for banking sector including operationalise the NARCL, disinvest government stake in two public sector banks, agriculture credit availability target could be increased to Rs18 lakh cr, extension of the ECLGS scheme.

At around 10:35 PM, Bank Nifty was trading at 38,735.60 up 760.25 points or 2.00%. The index has touched an intraday high and low of 38,802.70 and 38,221.35 respectively.

Nifty Financial Services at 18,189.60 up 353.35 points or 1.98%. Nifty PSU Bank was 3,005.25 up 0.77% and Nifty Private Bank at 19,439.50 up 2.11%.

Meanwhile, Indian Benchmarks indices was on a bullish note today. BSE Sensex was trading at 58,752.36 up 738.19 points or 1.27% and Nifty 50 at 17,518.80 up 241.95 points or 1.40%

On the trading window the top bulls were: IndusInd Bank, ICICI Bank, Kotak Bank, Axis Bank, HDFC Bank, AU Bank as all the banking majors weretrading in the green zone.

Banking majors like SBI, Bandhan Bank, PNB and Federal Bank also led the rally session by surging between 1% each to marginally higher to support the upside trend.