On May 12, 2025, the Nifty Financial Services Index (FinNifty) rose 919.05 points or 3.6% at 1:45 PM to 26,423.80. The sharp upmove came amid a broad based rally in financial stocks, reflecting renewed investor optimism following signs of easing geopolitical tensions between India and Pakistan.
The FinNifty index, which tracks the performance of India’s financial sector, including banks, housing finance, insurance, and NBFCs, witnessed strong buying interest across the board.
Among the key contributors to the index's surge were heavyweight stocks HDFC Bank and ICICI Bank. HDFC Bank jumped 3.44% to ₹1,954.70, contributing a massive 289.12 points to the index rally, accounting for nearly 33% of the total weightage.
ICICI Bank followed closely, rising 3.71% to ₹1,440.40, contributing 214.77 points to the FinNifty’s gain. Together, these two private sector banking giants fueled more than half of the day's upward momentum for the index.
Notably, at 1:45 PM on May 12, all stocks under the FinNifty umbrella were trading in the green, an unusual but highly bullish signal. The absence of any laggards emphasised the strength of the financial sector rally, driven by both institutional flows and positive market sentiment.
The bullishness in FinNifty was mirrored in the broader market as well. The benchmark Sensex surged 2,276.30 points (2.86%) to 81,730.77, and the Nifty gained 715.90 points (2.98%) to reach 24,723.90 by early afternoon.
This rally was supported by a significant drop in the India VIX a key measure of market volatility, which declined over 16%, indicating cooling investor anxiety.
Market breadth remained firmly positive, with 3,178 stocks advancing, 373 declining, and 105 unchanged, showing strong buying across the board.
Read More: Best Bank Stocks in May 2025: Indian Bank, Jammu and Kashmir Bank and More – Based on 5Y CAGR.
May 12 marked a decisive day for Indian financial markets, especially for FinNifty, which saw a robust 3.6% gain backed by stellar performances from sector heavyweights and improving geopolitical sentiment.
With no red stocks in the index and India VIX cooling off, the sentiment appears firmly in the bull’s corner. Going forward, stability on the geopolitical front and strong macroeconomic cues may continue to drive financial stocks higher.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: May 12, 2025, 2:09 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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