Synopsis
Banking stocks rallied on Friday, sending the Nifty Bank index up over 500 points ahead of the Q1FY27 results of HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank and Yes Bank. Brokerages expect steady loan growth and stable asset quality, although margin pressure could weigh on earnings in the quarter.
ETMarkets.comActions of significant private lenders, notably HDFC Bank, Axis Bank, Kotak Mahindra Bank and others jumped as much as 3% on Friday, pushing the Clever banking higher, before their highly anticipated First quarter result announcements planned for Saturday.
Shares of Kotak Mahindra Bank jumped nearly 3% to trade at Rs 386 a piece on the NSE, as seen at 12 noon. Federal Bank shares gained more than 2%, while those of HDFC Bank, ICICI Bank and Axis Bank rose more than 1% each.
The gains pushed the Nifty Bank over 500 points to 58,095. State Bank of India (SBI) and IndusInd Bank stocks gained nearly 1% each, while those of Yes BankBank of Baroda and others fell around 1%.
What should we expect from bank results in the first quarter?Up to five heavy goods vehicles private banksincluding HDFC Bank, Axis Bank, Kotak Mahindra Bank, ICICI Bank and Yes Bank, are all set to announce their results for the April-June quarter of the current financial year 2027 on Saturday (July 18), with analysts giving mixed views on which stocks investors might consider buying ahead of the Q1 results release.
Nomura, in its note, said it expected banks under its coverage to report modest core-PPOP growth, driven by weak NII growth and controlled operating expenses, while seasonally higher credit costs keep PAT growth muted. He named ICICI Bank, HDFC Bank and Kotak Mahindra Bank among his top picks.
The international brokerage said reported loan growth was strong for HDFC Bank and Yes Bank, but weak for Axis Bank and Kotak Mahindra Bank. For ICICI Bank, Nomura expects strong loan growth. However, overall she expects net interest margins for lenders to moderate.
Read also | Q1 showdown: Analysts pick best bets as ICICI Bank, HDFC, Axis, Kotak and Yes Bank prepare for results this week
“We expect Q1FY27 to be another stable quarter with a negative surprise, if any, from a possible NIM contraction. Provisional numbers suggest strong loan growth performance across banks (large/mid, public/private/SFB). current macroeconomic outlook, which could see NIM pressures ease from now on,” Kotak Institutional Equities said.Technical view on Nifty BankTechnically, Nifty Bank is likely to find immediate support near the 56,800-57,000 zone, while the 58,200 level is likely to act as a key resistance, said Vatsal Bhuva, technical analyst at LKP Securities. Until a decisive breakout or breakout occurs, the nuance should remain neutral, making a strategy of buying on dips near support and selling on increases near resistance favorable, the analyst added.
“On the upside, 58,700 (June high) remains the immediate hurdle. A decisive close above this level would confirm a breakout of the ongoing consolidation and may trigger the next leg of the rally towards the 59,300 and possibly 60,000 levels in the coming weeks,” Bajaj Broking said.
Read also | Shares of Reliance Industries jump 2% ahead of the Mukesh Ambani-led company’s first quarter results. How to trade stocks today?
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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(What’s moving Sensex And Clever Track latest market news, stock market advice, Budget 2025, Equity market on the 2025 budget And expert adviceon AND Markets. Additionally, ETMarkets.com is now on Telegram. For the fastest news alerts on financial markets, investment strategies and stock market alerts, subscribe to our Telegram feeds .)
Subscribe to AND Bonus and read it Electronic document on economic times Online.and Sensex today.
Most trending stocks: SBI share price, Axis Bank share price, HDFC Bank share price, Infosys share price, Wipro stock price, NTPC stock price
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