Maintaining its bullish trend for the fifth consecutive trading session, the Nifty PSU Bank index saw a remarkable 0.83% rise in today’s trade (Thursday), touching an all-time high at 5,487 points. Of the 12 index items, seven closed positively.
Indian Overseas Bank led the gains with a 3.4% increase, followed by Indian Bank and Punjab National Bank, recording gains of 3.1% and 1.6%, respectively.
Also Read: Nifty 50, Sensex snap 7-day winning streak; middle, hats above; RBI MPC result in focus
According to domestic brokerage firm Motilal Oswal, the BJP’s recent strong performance in state elections has instilled confidence in political stability for 2024. This positive outlook bodes well for India’s macroeconomic and political momentum, especially given the country’s leading growth among major economies in terms. of both GDP and corporate income. This, in turn, could boost financial and banking activities going forward.
Shares of Punjab National Bank hit a 52-week high of ₹87.2 per in today’s trade. From the March 2023 low of ₹44.1 per, the stock has gained 97.73% year to date. With a year-to-date return of 53.76%, the stock has secured the third position among the top performing stocks in the index.
Also Read: Punjab National Bank stock gained 53% in CY23; should you buy
Similarly, Bank of India shares also touched a new 52-week high of ₹118.2 per This year so far, the stock has delivered a return of nearly 29%.
Going further, the Nifty PSU Bank index has gained 26.64% this year, outperforming the benchmark Nifty 50 index, which delivered a return of 15.44%.
On the financial front, PSU banks posted another stellar performance for the September quarter (Q2FY24), reporting a net profit of ₹33,643 crores. During the July-September period of the previous fiscal year, all 12 state-owned banks recorded a net profit of ₹25,684 crores.
Meanwhile, domestic equity benchmark indices – Nifty 50 and the Sensex – snapped their seven-day winning streak amid profit booking in select heavyweights.
The Nifty 50 experienced a modest decline of 0.17%, closing at 20,901 points in today’s session. However, the index maintained its position above the 20,900 level for the second consecutive trading session. The S&P BSE Sensex was down 0.19%, settling at 69,521 points.
Market experts suggest that investor attention has shifted to the upcoming monetary policy decisions of the Reserve Bank of India (RBI) and the US Federal Reserve.
“The market has calmed down, the investors are in wait and watch before the monetary policy announcement. Better than estimated Q2 GDP growth, ease in global oil prices and fall in global bond yields will be the silver lining for the MPC. However, the expectation of rise in domestic November inflation, fall in Rabi cultivation and rise in food prices will influence the RBI to adopt a cautious approach in the near term,” said Vinod Nair. , Head of Research at Geojit Financial Services.
Also Read: RBI’s Monetary Policy Meeting: Key issues to watch out for
On the technical front, Rupak De, Senior Technical Analyst at LKP Securities, said, “The Nifty remained sideways during the session, hovering within the bands of 20,850-20,950. Sentiment remains somewhat cautious ahead of the RBI policy meeting. The near term trend remains sideways to weak as long as it remains below 21,000, a psychologically crucial level. A decisive break above 21,000 could induce a resumption of the uptrend. Until then, we anticipate weakness in the near term.”
Disclaimer: The opinions and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 07 Dec 2023, 17:23 IST
(tagsTo Translate)Markets