On January 2, 2026, at 12:44 PM IST, India’s Nifty PSU Bank Index surged 1.24% to a record high of 8,678.00, led by SBI, Canara Bank, and Bank of Baroda. Strong credit demand, improving asset quality, and government-backed initiatives fueled the rally, boosting investor confidence in PSU banks’ growth outlook.
As of Friday, January 2, 2026, 12:44 PM IST, India’s Nifty PSU Bank Index (.NIFTYPSU) climbed as much as 1.24% to a record high of 8,678.00, marking a historic milestone for public sector banks. The rally reflects strong investor confidence in PSU lenders, driven by improving asset quality, robust credit growth, and government-backed infrastructure initiatives.
Key highlights of the session include:
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The index touched 8,678.00, its highest level ever recorded.
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State Bank of India (SBI), Canara Bank, and Bank of Baroda led the gains, contributing significantly to the surge.
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Analysts noted that PSU banks are benefiting from declining non-performing assets (NPAs) and steady loan demand across retail and corporate segments.
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Broader market sentiment remained positive, with the Nifty 50 trading higher, reinforcing bullish momentum across sectors.
Experts suggest that the PSU banking rally underscores the sector’s resilience and renewed investor interest, positioning it as a key driver of India’s equity markets in FY26.
This record high highlights the pivotal role of PSU banks in India’s financial ecosystem, with investors betting on sustained profitability and sectoral strength.
Sources: Reuters, Economic Times, Investing.com India, Business Standard