Kotak Mahindra Leads the Charge as Nifty Bank Hits Historic Highs

Kotak Mahindra Bank emerged as a key mover in today’s trade, registering sharp intraday gains amid heightened investor interest and strong trading volumes. The stock rose nearly 3% to touch ₹2,134.50, pushing the lender’s market capitalisation past ₹4.05 lakh crore.

The stock's sharp rise, driven by robust volumes and renewed investor interest, positioned it among the top contributors to the Nifty Bank index, which surged past the 57,000 mark for the first time.

Despite recent short-term underperformance - down 2.63% over the past month and 1.09% in the last six months - Kotak Bank has delivered a respectable 5.4% return over the previous quarter, indicating a potential turnaround. Today’s gains contrast with last session’s close of ₹2,073.40, when the stock ended 1.62% lower.

From a technical standpoint, the stock has broken above key resistance levels and is currently trading above its R2 level of ₹2,115.13, a signal often associated with bullish momentum. The stock’s six-month beta of 0.91 also reflects relatively lower volatility compared to the broader market.

The rally in banking stocks has been underpinned by supportive macro signals, including recent liquidity-friendly moves from the Reserve Bank of India, such as a policy rate cut and reduction in the cash reserve ratio. These measures have bolstered sentiment across the sector, with Kotak Bank emerging as a key beneficiary.

As of 11.15 AM, Kotak Mahindra Bank shares are trading near ₹2,133.90, up over 2.8%.

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