The Indian stock market edged higher amid mixed global cues in late morning trade on September 1, with Sensex up 153.97 points, or 0.27 percent, at 57,706.36, and the Nifty adding 34 points, or 0.20 percent, at 17,166.20.
Among the sectors, the banking index gained over a percent led by Axis Bank that jumped 3 percent followed by RBL Bank, IndusInd Bank, Federal Bank, ICICI Bank and IDFC First Bank.
ICICI Bank also crossed the Rs 5,00,000 crore in market capitalisation at Rs 5,02,739.35 crore at 11.08 am. The stock has surged over 49 percent in 2021.
It is the second lender after HDFC Bank and the seventh Indian firm to cross the milestone.
Experts are of the view that the banking index may outperform in the coming sessions as the Bank Nifty closed above the key resistance level of 36,400 on August 31.
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“The potential rise in the NPAs is also a concern for the Street. The banks have been proactive in this matter and have been creating provisions in order to meet any eventuality. These factors led to a major correction in the banking sector in the last quarter of FY21 and it could not regain its position even after posting good numbers for Q1FY22,” said Vishal Balabhadruni, Banking Analyst at CapitalVia Global Research.
With the recovery in the economy, the banking sector is also expected to gain on increased business activity and growing asset quality, he said.
The growth may be visible in the second half of FY22. There has been a considerable consolidation on the monthly chart and a breakout above 37,700 is expected to pave way for a fresh rally, Balabhadruni said.
Among the banking names, Yes Bank was the most active stock on NSE with 3,73,57,541 shares being traded followed by PNB (1,41,39,798), IDFC First Bank (1,06,80,985) and Axis Bank whose 1,05,45,872 share were being traded at 11 am.
The share price of Axis Bank and ICICI Bank hit a new 52-week high on NSE.
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