Major banking stocks such and HDFC Bank, ICICI Bank, Axis Bank, IndusInd Bank and Karur Vysya Bank were trading in green on Monday, July 6 as brokerages remained primarily bullish on the provisional April-June quarter numbers.
The rally was led by India's biggest private lender HDFC Bank, rising as much as 3.21%, while Axis Bank gained 1.86% and AU Small Finance Bank advanced 1.24%, according to NSE data. ICICI Bank rose 1.22%, while Kotak Mahindra Bank fell 2.89%.
Following the gains in banking stocks, Bank Nifty rose as much as 0.75% to 58,373 points. The index rose after sessions marred by high volatility following the Middle East conflict. The crisis led to a significant fall in banking heavyweight HDFC Bank shares. The resignation of HDFC Bank Chairman, Atanu Chakraborty also dragged the leading private banking stock.
Brokerages largely remained positive on first-quarter business update of Indian banks, highlighting loan and deposit growth. Citi expects bank EPS growth at 10% in FY26 and 14% in FY27, with FY27 margin expectations seen as reasonable and nearly flat year-on-year. The brokerage said credit growth, auto sales and property data were stronger than expected, while nominal GDP growth of 12–12.5% should support revenue growth.
Morgan Stanley said loan growth trends are diverging across banks. According to the brokerage, HDFC Bank saw an acceleration in loan growth, Axis Bank maintained volume momentum, while Kotak Mahindra Bank saw moderation in loan and deposit growth. It said IDFC First Bank kept loan growth above 20% and IndusInd Bank showed early signs of balance sheet stabilisation. It said deposit momentum improved at IDFC First Bank and IndusInd Bank.
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