Nifty Bank, Nifty PSU Bank shares gain as Nifty 50 puts up lacklustre show; public banks outdo their private peers - Indusind Bank, Kotak Bank, SBI, PNB, BoB among top gainers

In an otherwise flat but positive market, Nifty Bank and Nifty PSU Bank indices were the biggest gainers among all other indices at around 12:30 pm on Tuesday. While the latter was up by almost 1.6 per cent, the former was trading with an uptick of almost 1 per cent on the intraday basis at the time of filing of the story.

Indusind bank was among the top gainers on Nifty 50 and was also among the top gainers on Nifty Bank. State-run Punjab National Bank shares (PNB shares) was the biggest gainer on Nifty 50 followed by Kotak Mahindra Bank and Federal Bank. Out of the 12 stocks in this index, 10 were trading positively while two stocks declined. The losers were AU Finance Bank and RBL Bank.

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Individually, Index heavyweights such as IndusInd Bank and Kotak Bank each are gaining around 1.5 per cent.

The public sector counterparts outdid their private peers as no stock in the NIFTY PSU Bank index was in the red. Around this time, 12 stocks advanced while 1 remained unchanged out of the 13 stocks in this index. Canara Bank, Bank of Baroda (BoB shares) and PNB were the biggest three gainers. Index heavyweight State Bank of India Shares (SBI shares) were up by 0.6 per cent and were trading at Rs 431.85 on the NSE.   

Canara Bank, BoB and PNB shares were up 2.1 per cent, 1.9 per cent, and 1.7 per cent respectively on the intraday basis.

Speaking about the surge in both Nifty Bank and PSU Bank Index, Choice Broking Executive Director and market expert Sumeet Bagadia says, the surge in both the indices perhaps amid some cabinet announcement today and both sectoral indices witnessed consolidation in the last few sessions.

Bagadia is bullish on the PSU bank stocks such as BoB, SBI, PNB and Canara Bank, he suggests there is a huge potential on this stock and may give bumper returns in the near future.

While, TradeSwift’s Director and analyst Sandeep Jain says, Nifty Bank has been underperforming as compared to the benchmark indices and it is trying to catch up with the market’s rally. Being bullish on the Index, Jain expects, Nifty Bank would reach 38000-4000 levels soon in the next two months. 

He says, the unlocking theme is helping the banking sector to recover their losses and improve their business, as loans are being repaid. Jain says, PSBs such as SBI, PNB and BoB are also supporting Nifty and in coming months Bank Nifty would outperform the Nifty50.

Similarly, another fundamental analyst Simi Bhaumik says, Bank Nifty yesterday tested it lows and many banking majors fell from their highs and have reported a massive bounce back today. She adds, the Nifty Bank would touch 38000 levels once it breaches 37200-37250 resistance level.

The market analyst also being bullish in both the indices, adds, the support for Nifty Bank is 36500 and it would certainly hit the new highs, if continue to break resistance, supported by banking heavyweights such as HDFC Bank, including PSU bank stocks such as SBI, PNB and BoB mostly.