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Below is Quote Banking stocks by Mr. Sandeep Gupta, Senior Grp. VP & Head of Dealing & Advisory - Broking & Distribution, MOFSL

Banking stocks likely to lead the rally

Bank Nifty has been the biggest outperformer in recent months as good buying interest is seen across financial stocks. The Index made a new all-time high of 44483 mark today, compared to its previous high of 44,151 made in December 2022. Earning momentum continued for Banking stocks as most Banks reported strong results. Apart from further expansion in margins, asset quality too continued to improve. Loan book growth has been healthy across segments.

The Index is witnessing a strong breakout and could see further momentum from hereon and the Index can now head towards 45000 to 46000 zones in coming sessions.

Apart from BFSI stocks the investors at large are getting more active on Mid and Small caps where there has been a good momentum built in last few weeks. We are also seeing some buying happening on mid cap IT stocks lately after Nasdaq showed strong recovery in last few months and moving near to its 52 week high levels. Overall the participation on the retail investors are seeing good traction post momentum in broader markets.

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