The Bank Nifty surged to a fresh record high on Wednesday, jumping over 700 points to cross 59,500 during morning trade as strong rate-cut optimism and broad-based buying lifted investor sentiment. The index climbed 1.2%, extending its impressive year-to-date gains to 16.5%, far ahead of the Nifty 50’s 9.7% rise in 2025. All 12 components traded in the green, with public-sector lenders leading the charge. Canara Bank gained 2.2%, while Punjab National Bank rose 2%. Among private lenders, Axis Bank and IndusInd Bank added nearly 2%, reflecting improved market appetite.
The rally strengthened after RBI Governor Sanjay Malhotra reaffirmed that there remains scope for policy rate cuts, noting that macroeconomic data continues to support monetary easing. His remarks come days ahead of the MPC meeting beginning December 3. The committee has already cut the repo rate by 100 basis points this year.
Meanwhile, PSU banks expanded their dominance in the home-loan market, capturing 50% of originations by value in September, according to a Crif High Mark report that also pointed to improving asset quality. Private banks, however, are expected to lose market share again in FY26 as their loan growth lags the broader sector.
A strong global market setup also lifted domestic equities, with the Sensex rising 744 points and the Nifty gaining 234 points.
