Brokerage upgrades and RBI measures lift investor sentiment in the sector
Axis Bank’s stock witnessed healthy momentum on October 3, 2025, climbing over 1% in intraday trade. At 12:55 p.m. IST, the share was up 1.51%, trading at ₹1,176.30, even as the broader Nifty 50 index slipped marginally by 0.055%. The rise highlights strong investor confidence in banking stocks, fueled by both brokerage upgrades and the recent policy reforms announced by the Reserve Bank of India (RBI).
RBI Reforms Push Banking Sector Higher
The RBI’s latest policy measures, unveiled on October 1, have given a strong boost to the banking sector. Among the key reforms is the move to allow banks to finance corporate mergers and acquisitions — a development expected to create significant lending opportunities. The central bank also announced the eventual removal of the ₹10,000 crore cap on loans that can be extended to a single company, potentially unlocking higher credit growth.
Additionally, the limit for loans offered to customers applying for IPOs has been raised from ₹10 lakh to ₹25 lakh, which could spur higher retail participation in equity markets. The RBI further reduced risk weights on loans to small businesses and MSMEs, easing capital requirements for banks and enabling them to lend more freely while maintaining healthy capital adequacy ratios.
RBI’s decision to keep policy interest rates unchanged has also strengthened optimism, as stable rates allow banks to maintain robust net interest margins. As a result, Bank Nifty rose by 0.32%, Nifty PSU Bank index advanced 1.09%, and Nifty Private Bank index gained 0.45% during the day.
Axis Bank Outperforms Nifty 50 in 2025
Axis Bank’s rally is supported by a leading brokerage raising its target price for the stock. The bank has also been one of the stronger performers within the sector this year. In the past five days alone, its shares gained 1.33%. Over the past month, the stock surged 11.22%. Year-to-date in 2025, Axis Bank is up 9.44%, significantly outperforming the Nifty 50 index, which has delivered a 4.55% gain in the same period.
With a 52-week high of ₹1,247 and a low of ₹933.50, Axis Bank continues to attract investor interest, positioning itself as a key beneficiary of the RBI’s pro-growth banking reforms.
