Bank Nifty Reaches Record High, Strong Q4 Results, and Renewed FPI Interest Are Responsible

Bank Nifty Hits Record High on Strong Q4 Earnings and FPI Inflows

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: April 22, 2025

Summary: Strong quarterly results from large private banks and a rise in overseas portfolio investments helped the Bank Nifty index hit an all-time high.

On April 21, 2025, the Bank Nifty index achieved a new record, closing at 55,304.5 after rising 1.87% during the day. Leading private sector banks' impressive Q4 results and fresh buying activity from foreign portfolio investors (FPIs) were the main drivers of this spike.

HDFC Bank and ICICI Bank were significant contributors to this rally. HDFC Bank reported a 6.7% year-on-year increase in standalone profit after tax, reaching ₹17,616.14 crore. ICICI Bank posted an 18% rise in standalone net profit, amounting to ₹12,630 crore for the quarter ended March 2025. Both banks' stocks closed at record highs, with HDFC Bank at ₹1,925.2 and ICICI Bank at ₹1,408.1 per share.

Market analysts attribute the index's rise to a combination of strong earnings, favorable macroeconomic conditions, and increased FPI activity. The strong net interest income increase and cheap borrowing costs helped to boost investor mood, said the founder and fund manager at Wright Research PMS, Sonam Srivastava.

According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, FPIs have been aggressively buying banking stocks in large quantities in recent days, which has caused the index to rise even further.

This upward movement in the Bank Nifty reflects growing investor confidence in India's banking sector, supported by strong financial results and favorable investment conditions.