Bank shares will show strength in Q1 results! Brokerage advises big buying on these stocks including HDFC and SBI Bank stocks set to shine in Q1 results! Brokerages issue strong ‘buy’ recommendations for these stocks, including HDFC and SBI.

Now the season of first quarter (Q1 FY27) results is about to begin in the stock market, about which a lot of enthusiasm is being seen among investors and experts. Excellent performance is expected from the banking sector in this quarter. Market experts and leading brokerage houses believe that due to strong loan growth and improvement in asset quality, bank shares may see a good rise. In such a situation, shares of leading government and private banks are being seen as the top pick to include in the portfolio.

What are the expectations for the banking sector?

The market is going to keep a close eye on the Net Interest Margin (NIM) of banks in the Q1 report card. According to recent data, credit offtake is continuously increasing in the Indian banking system, which will have a direct impact on the profits of banks. Brokerage houses estimate that big banks have improved their operational efficiency, due to which their net profit may be better than expected. This quarter will especially reflect the health of the retail and corporate loan books, which will act as a big trigger for banking stocks.

Bet on these shares including HDFC and SBI

Based on Q1 preview, brokerage houses have adopted a bullish stance on many banking stocks and placed them among the top picks. At the top of the list are the country’s largest government bank State Bank of India (SBI) and leading private bank HDFC Bank. Apart from these, experts are also keeping an eye on ICICI Bank and Kotak Mahindra Bank. Experts say that the strong balance sheet and falling NPA of these banks makes them safe and attractive for investment even in the current market volatility.

What is the signal for investors?

If you are also thinking of betting on bank shares in the results season, then this is the right time to review the portfolio. According to brokerage reports, a good recovery can be seen in the banking index in the coming days. However, before making any big investment in the market, it is very important to understand the results as well as the future guidance of the banks’ management. It is expected that after the Q1 results, a new momentum will be seen in the banking sector, which can become an opportunity for wealth creation in the long term for investors.