Bank Nifty Gains Momentum on Strong Q2 Business Updates from HDFC and Kotak Mahindra Bank

The Bank Nifty index continued its upward trajectory for the fifth consecutive session on Monday, driven by strong buying in banking stocks following solid second-quarter business updates from HDFC Bank and Kotak Mahindra Bank.

Investors witnessed broad-based gains across the index, with all 12 constituents trading in the green. Bank Nifty surged 450 points (0.8%), reclaiming the 56,000-mark, and touched intra-day highs of nearly 3% during the session.

Market Performance Snapshot

• Bank Nifty rise: +450 points (0.8%)
• Current level: 56,000
• Key support: 55,000
• Key resistance: 56,000
• Trend: Fifth consecutive day of gains

This momentum reflects investors’ optimism following robust quarterly business updates from major private sector banks.

HDFC Bank Q2 Highlights

HDFC Bank, the heaviest weighted stock on the Nifty 50, posted steady growth across loans and deposits:

• Loan growth: 10% YoY for September 2025 quarter
• Deposits: Rs 27.1 lakh crore, up 15.1% from Rs 23.5 lakh crore last year
• Average CASA deposits: Rs 8,770 billion, increased 8.5% from Rs 8,084 billion in September 2024

The bank’s gross advances growth showed strong momentum, marking a noticeable improvement from the previous two quarters.

Kotak Mahindra Bank Q2 Highlights

Kotak Mahindra Bank led the gains in Bank Nifty, climbing 1.5% on the back of robust growth in loans and deposits.

• Loan disbursal growth: 15% for the September quarter
• CASA deposits: 6.2% YoY growth
• Net advances: 15.8%, surpassing 14.7% estimates

HDFC Bank also gained 0.7% during the session, supporting the overall index uptrend.

Public Sector Bank Update

State-owned Bank of Baroda also reported upbeat results, hitting a 15-month high at Rs 272.05, following strong Q2 numbers:

• Global business: Rs 27.79 lakh crore, up 10.47% YoY
• Global advances: Rs 12.79 lakh crore, +11.9% YoY
• Global deposits: Rs 15 lakh crore, +9.28% YoY

Growth trends in both loans and deposits were higher compared to the previous quarter, highlighting improved performance in public sector banks.

Summary

The Bank Nifty rally reflects a broad-based recovery led by strong performance in HDFC Bank and Kotak Mahindra Bank, supported by positive business trends in public sector lenders like Bank of Baroda.

Key takeaways from the Q2 updates:

• Private banks are showing steady loan and deposit growth.
• CASA deposits continue to rise, supporting liquidity.
• Public sector banks demonstrate improved quarterly performance.

The current momentum positions the Bank Nifty for potential further gains if the trend sustains above the 56,000 level, making these quarterly results an important driver for market sentiment.