Nifty PSU Bank Index Hits Record High, Surges 21% Since October on FPI Buying

Public sector bank shares remained strong on Tuesday even as the broader market traded weak. The Nifty PSU Bank index climbed to a fresh lifetime high of 9,093 during intra-day trade on the NSE.

By 9:24 AM, the PSU Bank index was up 0.7%, while the Nifty 50 was down 0.27%, showing clear outperformance by banking stocks.

21% Rally Since October 2025

The Nifty PSU Bank index has surged 21% since October 2025, driven largely by strong buying from foreign portfolio investors (FPIs). In comparison, the Nifty 50 gained only 3.7% during the same period.

Major gainers since October include:

• Bank of India, Union Bank and Canara Bank: up 29–34%
• SBI, Bank of Maharashtra, Bank of Baroda, Indian Bank and PNB: up 15–20%

FPIs Increase Stakes in PSU Banks

Foreign investors significantly raised their holdings in PSU banks during the December 2025 quarter.

Key stake increases:

• Canara Bank: up 2.7% to 14.6%
• Bank of India: up 1.6% to 5.8%
• Bank of Baroda: up 1.1% to 9.84%
• SBI and Indian Bank: up nearly 1% each
• Union Bank, PNB and Bank of Maharashtra: up 0.2% each

Also Read: Best Long-Term Stocks in Jan 2026 – 5yr CAGR Basis!

Conclusion

Strong foreign buying and improving earnings visibility have pushed PSU bank stocks to record levels. Continued FPI interest and stable asset quality may keep the sector in focus, even in a volatile market.

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