After hitting a new record high in early trade today (June 30, 2025) of 57,614.5, the Bank Nifty index traded in the red- down 0.19 per cent at 57,336. Importantly, the high beta Nifty Bank index logged its new all-time high for the third straight session in a row.
On a year-to-date (YTD) basis, Nifty Bank has climbed nearly 13 per cent, significantly outperforming the bluechip Nifty index that during the same time period has moved higher by nearly 8 per cent.
Of the 12 constituents, 8 stocks advanced, while the remaining four saw profit booking. From the pack, primarily state-run banks led the gains, with stocks like Punjab National Bank (up nearly 4 per cent), Bank of Baroda (up over 3 per cent), Canara Bank (nearly 3 per cent), Federal Bank (up over 2 per cent) and SBI (up 2 per cent).
Nevertheless, stocks like Axis Bank, Kotak Mahindra Bank, ICICI Bank and HDFC Bank led the laggards with a fall of up to 2 per cent.
Banking sector outperforms broader market in June
Dr. Ravi Singh, SVP – Retail Research, Religare Broking noted that the banking sector outperformed the broader market in June, with the Bank Nifty index gaining over 3 per cent – a rise of nearly 1,800 points.
Pointing to its technicals, the expert said there has been a noticeable increase in Open Interest (OI), rising to 20 lakh contracts compared to 17 lakhs in the last series, along with a gain of over 1,700 points — indicating strong long build-ups.
What is driving Bank Nifty to new all-time highs?
Singh underlined that the uptrend was primarily driven by leading private banks such as HDFC Bank, Kotak Bank, Axis Bank, and ICICI Bank, while the PSU Bank index remained largely flat. Overall, the momentum in private banks played a key role in strengthening the Bank Nifty’s performance during the June month.
The combination of strong technical structure and favorable derivatives positioning suggests that Bank Nifty remains well-supported and is likely to continue its upward movement, provided key support zones are not breached, he added.
