India's private banking stocks staged a strong recovery on November 3, lifting the Nifty Private Bank index nearly 2%. HDFC Bank, ICICI Bank and Axis Bank led the advance during Tuesday's NSE trading session, outperforming the benchmark Nifty 50. The banking index gained 2% around 2:22 PM, while the Nifty 50 advanced 1.1%.
The rally extended recent gains across major private lenders, with renewed buying interest supporting their shares. HDFC Bank and ICICI Bank each climbed 7% over five trading sessions, compared with the Nifty 50's 5% advance.
Foreign portfolio investors also invested approximately Rs. 19,000 crore in equities during the same period, according to available market data.
ICICI Bank continued attracting investor attention through its strong credit growth and operating performance. Its July-September quarter results showed loan growth of 30% year-on-year and deposit growth of 27%.
Excluding FCNR(B) mobilization, underlying loan growth reached 24%, supported by business banking and corporate demand.
JM Financial Services maintained a Buy rating on ICICI Bank with a target price of Rs. 1,710. The brokerage highlighted its expanding corporate banking franchise, healthy fee income and strong asset quality. It also expects margin pressure to ease as the bank deploys surplus liquidity from Q4FY27.
HDFC Bank also gained momentum after facing pressure following its second-quarter results. Analysts at Axis Securities see improving branch productivity, retail credit growth and deposit mobilization supporting its recovery. The brokerage retained its Buy rating with a Rs. 950 target price, citing favorable risk-reward prospects.
Axis Bank added to the sector's momentum with improving profitability and asset quality. Jefferies noted that its Q2FY27 standalone net profit rose 38% year-on-year to approximately Rs. 7,003 crore. Better core margins and lower credit costs could support returns next year, according to the brokerage.
The latest advance signals renewed investor interest in large private banking stocks after their recent post-results weakness. Strong performances from heavyweight lenders could continue supporting the Nifty Private Bank index.
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