BANK NIFTY HITS RECORD HIGH ON STRONG GAINS FROM PRIVATE SECTOR BANKS

Nifty Bank index climbed to a new record high of 57,076 today 26 June, surpassing its previous hgh of 57,049 touched on 9 June. This was mainly due to strong contributions from private sector banks including

, , and . The banking sector has been supported by favourable global cues after the ceasefire of Israel-Iran truce, as well as expectations of a potential rebound in credit growth driven by the central bank’s recent liquidity measures, which has made banking stocks increasingly attractive to investors. Last week the Reserve Bank of India (RBI) relaxed project finance regulations to make lending more affordable for infrastructure and industrial projects. Moreover, the relaxation in norms for gold loans and liquidity coverage ratio (LCR), along with aggressive rate cuts in the last two quarter signal a clear intent to revive credit growth in the Indian economy.