Looking to invest in stocks? These 4 banking shares must be on your purchase list for 2019
The recovery would also be aided by government infusing Rs 28,615 crore into seven public sector banks (PSBs) through recapitalisation bonds. In December 2018.
The Indian banking sector is likely to recover strongly as the tensions over lack of liquidity, lending restrictions, high NPAs are expected to ease in 2019. The recovery would also be aided by government infusing Rs 28,615 crore into seven public sector banks (PSBs) through recapitalisation bonds. In December 2018, Finance Minister Arun Jaitley said the government would put an additional Rs 41,000 crore in PSBs over and above what was announced earlier. The government had earlier announced an infusion of Rs 65,000 crore in PSBs in 2018-19, of which Rs 23,000 crore has already been issued, while Rs 42,000 crore was remaining.
The government sought Parliament's nod for infusion of an additional Rs 41,000 crore. Jailtely said, The recapitalisation, would enhance the lending capacity of PSBs and help them come out of the Reserve Bank of India's Prompt Corrective Action (PCA) category.
For those looking to invest in stock markets in 2019, the banking sector is something to watch out for. Sumeet Bagadia, Executive Director, Choice Broking, and Chandan Taparia, Technical Analyst, Motilal Oswal spoke to Zee Business Online and mentioned their picks from the banking sector for 2019.
Here are the 4 must have banking shares for 2019:
1. Bank Of Baroda: TGT-Rs 160, C.P-Rs 127.
"The stock has a good valuation, has a positive range of Rs 140 to 160," Bagadia said.
2. Axis Bank: TGT-Rs 750, C.P-Rs 621.
"It will head upside to 700 to 750 levels. The weekly chart is good," said Bagadia.
3. ICICI Bank: C.P-Rs 365.
"Technically, it looks good. It is trading at a lifetime high and expected to get stronger as it is having a weekly buying," said Taparia.
4. SBI: C.P-Rs 295.
"It is likely to cross 300 levels, and technically looks a buying option for 2019," Taparia added.
Watch this Zee Business tweet video
— Zee Business (@ZeeBusiness) January 2, 2019
There are total 11 banks out of 21 PSBs which falls under PCA category of banks, which are restricted for further lending. The banks are Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank, UCO Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce, Dena Bank and Bank of Maharashtra.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.