HDFC Bank, SBI, other stocks jump up to 2%; Nifty Bank gains 560 points.
What lies ahead?
ETMarkets.com Banking stocks advanced ahead of key Q1 earnings, with brokerages expecting steady loan growth and healthy asset quality, while keeping a close watch on margin trends across lenders.
Synopsis Banking stocks rallied up to 2% on Wednesday, lifting the Nifty Bank index as investors positioned themselves ahead of a crucial round of Q1 earnings from major private lenders this weekend.
Brokerages remain constructive on the sector, citing improving fundamentals, resilient loan growth and stable asset quality, while cautioning that pressure on net interest margins could weigh on near-term profitability.
By Debaroti Adhikary, ETMarkets.com XPeers Axis Bank Share Price Kotak Mahindra Bank Share Price Federal Bank Share Price IndusInd Bank Share Price YES Bank Share Price Last Updated: Jul 15, 2026, 02:57:00 PM IST Follow us The shares of banks, including heavyweights HDFC Bank, State Bank of India (SBI), IndusInd Bank and others, rose up to 2% on Wednesday, pushing the Nifty Bank index around 1% up as financial stocks led gains on Dalal Street.ADVERTISEMENT The Nifty Bank index gained around 561 points to trade at 58,023, as seen at 12.40 pm.
State Bank of India (SBI) shares were the top gainers, rising around 2%.
Union Bank of India, Punjab National Bank (PNB), Canara Bank, HDFC Bank and Bank of Baroda rose more than 1% each.IDFC First Bank, ICICI Bank and AU Small Finance Bank shares gained nearly 1% each, while Yes Bank, Axis Bank, Federal Bank and Kotak Mahindra Bank shares were trading in the green with marginal gains.
"Improving balance sheets, better liquidity conditions, stable interest rates and moderating credit costs are expected to support stronger growth and mark the beginning of a broad-based earnings upside for the financials sector," said Siddhartha Khemka, head of research of wealth management at Motilal Financial Services.
Q1 earnings showdown on Saturday The sharp rise in the shares of the Indian lenders ahead of crucial Q1 earnings announcements scheduled for Saturday.
As many as five heavyweight private banks, including HDFC Bank, Axis Bank, Kotak Mahindra Bank, ICICI Bank and Yes Bank, are all set to announce their results for the April-June quarter of the ongoing financial year 2027 on Saturday (July 18).Nomura, in its note, said that it expected banks under its coverage to report modest core-PPOP growth, led by soft NII growth and controlled opex, while seasonally higher credit costs keep PAT growth muted.
It named ICICI Bank, HDFC Bank and Kotak Mahindra Bank as its top picks.ADVERTISEMENT The international brokerage said that reported loan growth has been strong for HDFC Bank and Yes Bank, but soft for Axis Bank and Kotak Mahindra Bank.
For ICICI Bank, Nomura expects loan growth to be strong.
Provisional numbers suggest solid performance on loan growth across banks (large/mid, public/private/SFB).
Asset quality is holding up well across banks and products, with no discernible impact from the current crisis in the Middle East.
We prefer frontline banks to others looking at the current macro set-up, which could see NIM pressures abating from here on," said Kotak Institutional Equities.ADVERTISEMENT ADVERTISEMENT Services, meanwhile, said that its channel checks signal a strong MSME credit demand in the April-June quarter of the ongoing FY27, with an increase in the working capital cycle.
Private banks' share is higher among higher ticket sizes, while public sector banks are gaining incremental market share with competitive pricing and CGTMSE-backed lending, the domestic brokerage added.Technical view on Nifty Bank Vatsal Bhuva, Technical Analyst at LKP Securities, expected the Nifty Bank index to find support in the 56,800–56,900 zone, while immediate resistance was seen around 58,200.
ADVERTISEMENT On the upside, 58,700 (June's high) remains the immediate hurdle, according to Bajaj Broking.
