Why Banking Stocks are rising today? HDFC, ICICI Bank rises 2% each

24 Jun 2026 , 01:35 PM

Bank Nifty surged over 1.5% on June 24, reclaiming the crucial 58,000 mark as investors cheered the Reserve Bank of India’s latest policy signals and measures aimed at boosting foreign currency inflows. Leading the gains were HDFC Bank, ICICI Bank, and AU Small Finance Bank, helping the banking index outperform broader market benchmarks.

At midday trading, Bank Nifty was up 1.6% at 58,115.45, while the Sensex gained nearly 1% and the Nifty approached the 24,000 level. The rally was driven by two major developments that strengthened investor sentiment toward the banking sector.

RBI’s Dovish Stance Boosts Market Confidence

A key catalyst for the banking rally was RBI Governor Sanjay Malhotra’s statement that it is premature to discuss domestic interest rate hikes. The central bank does not currently see inflation becoming broad-based, suggesting that borrowing costs may remain stable in the near term.

Lower interest rates generally support economic growth by encouraging borrowing and spending. For banks, a supportive rate environment can improve credit demand across retail, housing, and corporate segments. Investors interpreted the RBI’s comments as a positive signal for banking stocks and the broader equity market.

Stable rates also help improve corporate earnings visibility and support higher market valuations, making financial stocks particularly attractive.

RBI Eases Rules on Foreign Currency Deposits

The second major trigger was the RBI’s decision to allow banks to extend loans to non-residents against foreign currency deposits. The move is expected to improve funding flexibility and attract additional foreign exchange deposits into the country.

Under the revised framework, banks can provide loans through overseas branches, including those operating from GIFT City, using eligible foreign currency deposits as collateral. Banks will also be permitted to issue standby letters of credit against such deposits.

Earlier this month, the RBI introduced measures to subsidize hedging costs for Foreign Currency Non-Resident (FCNR) deposits, encouraging banks to mobilize more dollar deposits from the Indian diaspora. Brokerage firm Nomura estimates that these measures could attract as much as $55 billion in foreign currency inflows, with a significant portion expected during August and September.

Higher foreign currency inflows can strengthen banking liquidity and support credit expansion, benefiting large private-sector lenders.

Banking Stocks Lead the Charge

Private banking stocks emerged as the biggest beneficiaries of the RBI’s announcements.

Top gainers included:

• AU Small Finance Bank: Trading at 1,060 . 70 up +3.35%
• ICICI Bank: Trading at 1,374.50 up +2.74%
• HDFC Bank: Trading at 790 . 00 up +1.98%
• Axis Bank Ltd: Trading at 1,382.50 up 1.40%

Investors favored banks with strong deposit franchises, healthy balance sheets, and superior growth prospects. Large private lenders remain well-positioned to capitalize on improving credit demand and enhanced funding opportunities.

Technical Outlook for Bank Nifty

Market experts remain constructive on the banking index despite the sharp rally witnessed over the past three weeks.

Key Support Levels

• 56,000 remains a crucial support zone.
• The level coincides with important retracement support and the recent breakout area.

Key Resistance Levels

• Immediate resistance: 58,300
• Next major target: 59,250

A decisive breakout above 58,300 could pave the way for further gains toward the 59,250 level in the coming sessions.

Disclaimer – The stock/s and indices mentioned in this article is discussed solely for informational and educational purposes. It should not be construed as investment advice or a recommendation to buy or sell any securities. Investors should conduct their own research or consult a financial advisor before making any investment decisions. Investments in securities market are subject to market risks. Read all the related documents carefully before investing. Data as of June 24 2026 at 1:34 PM on NSE