Continuing buying interest across the pack helped the Bank Nifty index improve its new high on Tuesday (May 30).
The index of banking stocks ended Tuesday's session at 44,436, a gain of 124 points or 0.3 per cent.
On Monday (May 29), Bank Nifty hit a new high after a gap of 166 days.
Analysts said strong results posted by most banks, margin expansion, improved asset quality and growth in loan book have helped to buy in banking stocks.
"The index is witnessing a strong breakout and could see further momentum from hereon, and the index can now head towards the 45,000-46,000 zone in the coming sessions," said Sandeep Gupta, head of dealing and advisory- broking & distribution, MOFSL.
The index has also benefited from buying from foreign portfolio investors (FPI) in finance stocks. FPIs bought finance stocks worth Rs 8,382 crore in the first two weeks of May, and as of May 15, 2023, finance stocks have the highest sectoral allocation as far as FPI investments are concerned.
Going forwards, analysts said they expected a 10-15 per cent upside in the Bank Nifty over the next 12 months as credit growth and improvement in the quality of assets are likely to continue.
However, a poor monsoon could throw a spanner in the wheel.
