Banking stocks led the market rally on Wednesday with the Nifty Bank index surging 1.79% to 58,205 and the Nifty Financial Services index gaining 1.5%. The rally was triggered by the RBI's announcement allowing domestic lenders to extend loans to non-residents against foreign currency deposits, including via offshore branches. As per Business Standard, this move is expected to boost the overall amount of FX deposits and aid margins and deposit mobilisation for banks. ICICI Bank shares jumped 2.7% to ₹1,374 while HDFC Bank gained 2% to ₹790, leading the sector gains. Other major gainers included AU Small Finance Bank at ₹1,064 (3.7%), IndusInd Bank at ₹930.25 (2.7%), Federal Bank at ₹326.5 (2.1%), Axis Bank at ₹1,385 (1.2%), and Kotak Mahindra Bank at ₹406 (1.2%).
RBI Governor Sanjay Malhotra pushed back against expectations for future interest-rate increases, stating it was 'premature' to discuss the policy outlook given ongoing geopolitical uncertainties. As reported by Business Standard, Malhotra said that if rate hikes were certain, the RBI would have changed the stance from neutral to restrictive. He emphasised that there is elevated uncertainty in the current environment. The governor's comments come as credit growth continues to remain robust at 14-16%, with analysts noting that pressure on net interest margins will likely reduce during FY27 as deposits are being repriced at lower rates. The Nifty Bank index has been witnessing a strong recovery since the beginning of June, with the index decisively crossing its long-term 200-day moving average and finding support near the ₹57,000 zone.
Market analysts and brokerage firms have identified high-conviction trading ideas for Thursday, focusing primarily on asset-heavy, banking and fintech industries. According to reports from NDTV Profit, the top picks include Adani Enterprises, HDFC Bank, Pine Labs, RBL Bank, and AU Small Finance Bank. These recommendations come from established market professionals who see positive technical momentum across these sectors, with the latest developments highlighting the banking sector's strong performance driven by RBI policy changes and robust credit growth. The Nifty Financial Services index gained 1.5% with Cholamandalam Investment and Finance Company leading at ₹1,801 (4.3%).
Amit Goel, CMT, SEBI registered research analyst and partner at BlueOak Wealth, sees positive price action in the asset-heavy conglomerate Adani Enterprises. The company is primarily engaged in infrastructure, energy, utilities, and emerging businesses. As reported by NDTV Profit, Goel recommended a buy on the stock for a target of ₹3,269, advising traders to maintain a stop loss at ₹2,943 to manage downside risk. The latest developments around Adani's $15-20 billion investment plan further strengthen the technical outlook for the stock. Bank Nifty witnessed a sharp rebound from the 200-DMA support area around 57,000 and formed a strong bullish candle, with analysts suggesting the index may advance towards 59,200 in the near term while the 60,000 mark remains the next major upside level.
The banking sector's strong performance was supported by multiple factors including the RBI's policy changes and recent pullback in crude oil prices, which has eased inflation concerns and likely rate hike expectations. According to Business Standard, public sector banks like SBI and Bank of Baroda gained 1-2% to trade at ₹1,040 and ₹281.10 respectively. The Nifty Financial Services index gained 1.5% with Cholamandalam Investment and Finance Company leading at ₹1,801 (4.3%). Other financial services companies including Bajaj Finance and Shriram Finance surged more than 2% each to trade at ₹985.50 and ₹1,020 respectively. Market veteran Sudip Bandyopadhyay describes the entire infrastructure power story as 'very impressive and goes with the growth of India,' with Adani Ports frequently cited as a must-hold for long-term investors building exposure to India's trade and logistics boom.
