Bank Nifty Falls After 6-Day Rally; Canara, HDFC Bank Among Top Losers
Bank Nifty ended its six-day winning streak with a sharp drop of nearly 1.5% from the day’s high. The decline followed a record high on April 22, likely due to profit booking. Top laggards included Canara Bank and HDFC Bank. Meanwhile, AU Small Finance Bank saw strong gains after reporting solid earnings.
02:41 PM Apr 23, 2025 IST
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Aakash Khuman
After a strong six-day rally, Bank Nifty saw a dip on April 23, falling 1.5% from the day’s high. This comes just a day after the index hit a record high of 55,961. Many experts believe the fall was due to investors booking profits after recent gains.
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Profit Booking Pulls Down Major Banking Stocks
The recent fall in share prices of banking stocks may be because investors decided to lock in profits. Despite the drop, the Bank Nifty index is still up by 8% so far this year, especially since a strong recovery started on April 9.
Technical Levels to Watch for Bank Nifty
According to Axis Securities, 55,617 is the key level for Bank Nifty.
- If the index stays above this level, it may rise to 55,991–56,709.
- If it goes below 55,617, it may fall further to 54,556.
Top Losers: Canara, HDFC, and Axis Bank
- Canara Bank dropped 2% to Rs 98.65
- HDFC Bank fell nearly 1.5% to Rs 1,930
- Axis Bank also declined by 1.5% to Rs 1,198.9
This drop came even after HDFC Bank recently crossed a market cap of Rs 15 lakh crore, making it the third Indian company to reach the milestone.
Other Banks in Red
Banks like Bank of Baroda, PNB, Federal Bank, SBI, Kotak Bank, ICICI Bank, and IndusInd Bank also saw losses, though not as steep. AU Small Finance Bank and IDFC First Show Strength. While most banks fell, AU Small Finance Bank surged nearly 6% to Rs 649 after reporting a 37% rise in net profit to Rs 2,106 crore for FY25. IDFC First Bank also gained over 1% to Rs 68.07.
RBI’s New Liquidity Rules and Sector Outlook
On April 21, RBI announced new Liquidity Coverage Ratio (LCR) rules, adding a 2.5% run-off rate for mobile and internet banking deposits. Motilal Oswal believes this move will improve bank liquidity and continues to have a positive view on the sector. Its top picks include ICICI Bank, HDFC Bank, SBI, and AU Small Finance Bank.
Also Read: Gold Prices Drop After Hitting Record Highs – What Investors Should Do Now
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