After the president and Kevin McCarthy finally settled on a plan to raise the nation's debt ceiling on Sunday, investors responded positively to the news. The Nifty Bank index follows the Nifty and Sensex in reaching new heights. Market sentiment is also being influenced by quarterly results from industry leaders.

The Nifty Bank index soared to a new all-time high on Monday, breaking the 44,400 barrier, on the back of persistent purchasing by FIIs and confidence regarding the US debt ceiling resolution. On May 15th, the banking index was 0.10 points short of matching its all-time high of 44,151.80 set on December 14th, 2022. The index opened the day with a bang, shooting up by over 400 points (0.9%) to a new all-time high of 44,418.

Thanks to its recent breakthrough over the 18,600 level, the Nifty50 is closing in on its all-time high of 18,887.60, reached on December 1 of last year. Similarly, the Sensex has surpassed the 63,000 mark and is now only 600 points away from its all-time high of 63,583.

The HDFC twins were the primary reason the Sensex and Nifty closed up by more than 1% each. All 12 stocks in the banking index were rising, with HDFC Bank being the largest contributor to Bank Nifty's gain.

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