Banking Stocks Started in Red in Pre-Opening Session
By Ankur Chandra | Updated at: Jun 23, 2025 11:42 AM IST
Mumbai, June 23, 2025: The banking stock started the week on a weaker footing as Nifty Bank slipped by 0.75% or 420.5 points in the pre-opening trade, settling at 55,832.35. Eleven out of the twelve prominent banking stocks under the index were in the red, signalling negative sentiment across the board.
HDFC Bank, Kotak Among Top Drags as Sentiment Turns Cautious
Heavyweights HDFC Bank and Kotak Mahindra Bank led the morning sell-off, with HDFC Bank dipping 0.83% to ₹1,948.40 and Kotak shedding 0.54% to ₹2,158.10. This early weakness contributed significantly to the overall decline in the banking index.
ICICI Bank, Axis Bank, and SBI followed closely, losing between 0.66% and 0.77%. Among these, ICICI Bank recorded a fall of ₹10.10 to ₹1,417, while SBI saw a drop of ₹6.15, opening at ₹790.
Pre-Opening Snapshot: Bank Stock Performances
| Stock | Pre-Open Price (₹) | Change (₹) | % Change | Previous Close (₹) | Year High (₹) | Year Low (₹) |
|---|---|---|---|---|---|---|
| HDFC Bank (HDFCBANK) | 1,948.40 | -16.30 | -0.83% | 1,964.70 | 1,996.30 | 1,588.05 |
| Kotak Bank (KOTAKBANK) | 2,158.10 | -11.70 | -0.54% | 2,169.80 | 2,301.90 | 1,679.05 |
| ICICI Bank (ICICIBANK) | 1,417.00 | -10.10 | -0.71% | 1,427.10 | 1,471.60 | 1,135.50 |
| Axis Bank (AXISBANK) | 1,212.60 | -8.10 | -0.66% | 1,220.70 | 1,339.65 | 933.50 |
| IndusInd Bank (INDUSINDBK) | 835.20 | -5.05 | -0.60% | 840.25 | 1,540.75 | 606.00 |
| SBI (SBIN) | 790.00 | -6.15 | -0.77% | 796.15 | 899.00 | 680.00 |
| Bank of Baroda (BANKBARODA) | 231.99 | -2.16 | -0.92% | 234.15 | 287.70 | 190.70 |
| Federal Bank (FEDERALBNK) | 205.33 | -2.18 | -1.05% | 207.51 | 217.00 | 172.13 |
| Canara Bank (CANBK) | 106.00 | -1.22 | -1.14% | 107.22 | 122.20 | 78.60 |
| IDFC First Bank (IDFCFIRSTB) | 69.30 | -0.89 | -1.27% | 70.19 | 84.50 | 52.46 |
| PNB (PNB) | 102.09 | -0.95 | -0.92% | 103.04 | 129.85 | 85.46 |
| AU Small Finance Bank (AUBANK) | 797.70 | +2.35 | +0.30% | 795.35 | 808.00 | 478.35 |
Only One Bank Posts Gains: AU Small Finance Bank Edges Up
AU Small Finance Bank emerged as the sole gainer, rising 0.30% to ₹797.70. This marginal uptick was supported by strong buying interest and positive sentiment around its retail loan portfolio growth in the June quarter.
Turnover Trends: HDFC Bank Tops Volumes, ICICI Follows
HDFC Bank clocked the highest pre-open turnover at ₹447.93 crore, reflecting significant trading activity ahead of expected loan book updates this week. ICICI Bank came in next with ₹80.81 crore, underscoring continued investor focus on large private lenders amid macroeconomic uncertainties.
Mid-Tier Banks Take Bigger Hit; IDFC First Drops Most
Smaller banks bore the brunt of selling pressure. IDFC First Bank fell 1.27%, marking the steepest percentage decline in the segment. Canara Bank and Federal Bank too dropped over 1% each, reflecting caution towards mid-tier lenders amidst concerns over credit quality stability in Tier-2 loan books.
Market Sentiment: Global Cues Override Domestic Fundamentals
Despite stable domestic fundamentals and optimistic quarterly projections from several banking leaders, market sentiment turned bearish. Global concerns — particularly around US Federal Reserve rate path signals and FII activity slowdown — appear to be weighing heavily.
Investors are awaiting clarity on the upcoming RBI monetary policy and key economic data expected later in the week, which may steer banking stocks back into recovery.
Additional Developments: RBI Oversight Intensifies Amid Credit Boom
Thе Rеsеrvе Bank of India, in its rеcеnt communication, has hintеd at еnhancеd scrutiny of unsеcurеd rеtail lеnding — a sеgmеnt whеrе many banks havе grown aggrеssivеly. This could posе nеar-tеrm hеadwinds for banks likе HDFC, Kotak, and IDFC First, all of which havе scalеd up lеnding in this domain. Furthеrmorе, analysts arе watching for updatеs from global bond markеts, which havе shown volatility in rеsponsе to gеopolitical dеvеlopmеnts and shifting commodity pricеs.
Outlook: Banking Sector Faces Critical Week Ahead
The current weakness in the Nifty Bank index is seen as a knee-jerk reaction to broader concerns. However, analysts suggest that sustained bearishness will depend on upcoming inflation numbers, liquidity trends, and commentary from large-cap banks during their upcoming AGM presentations.
Until clearer signals emerge from both domestic and international markets, investors may remain on the sidelines, awaiting opportunities in fundamentally strong counters.
About Nifty Bank
The Nifty Bank Index is a sectoral benchmark that tracks the performance of the most liquid and largest Indian banking stocks. It serves as a key indicator of financial market sentiment and banking sector trends.
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