The Nifty Bank index hit its lifetime high of 28,339.60 points, outperforming the Nifty 50 for the second consecutive day and also in 2018 so far. Analysts expect this trend to continue for some time.
Among major gainers, shares of the country’s third-biggest lender by assets, ICICI Bank Ltd jumping as much as 5 percent to Rs 334.9, highest since February 8.
The surge came as Morgan Stanley raised its price target to Rs 460 from Rs 425, after the lender said that it has made full disclosures about its bad loans and non-performing assets in its annual report, investor presentations, and analysts' calls.
Other gainers among bank stocks, were shares of Axis Bank, up 3 percent at Rs 613.95, Bank of Baroda up 3.7 percent at Rs 154, Punjab National Bank up 3.2 percent at Rs 82.95, and State Bank of India up 2.8 percent at Rs 317.20.
Bank stocks gained as dealers do not see a sharp rise in non-performing loans going forward.
Shares of Bandhan Bank rose by 6.63 percent to Rs 737.05, or by Rs 45.80 on the BSE at 12.40 pm.
The Sensex traded higher by 121 points, or 0.32 percent, to 38,009.10, while the Nifty 50 was at 11,465.30, up by 15.30 points, or 0.13 percent at 12.55 pm.
So far in 2018, Nifty 50 has risen 9 percent, while Nifty Bank has gained 10.8 percent.
(With inputs from agencies)