PSU Banks on a Buying spree as Bank Nifty hits at new High!!!

As expected PSU Banks ruled the roost at today's trading even as Bank Nifty made another new high up by 227.70 points to close the day @ 38521.5. The day sees the indices moved in a narrow range with Bank nifty up 0.6%, while Sensex and nifty up by about 0.25%.

PSU Banks made a smart come back with its Index moving up by 3.08% is giving a clear signal to the market that the worst is over this space. With its leader, SBI at its 52 weeks high closed @ 483/- (up 2.93%). Indian Bank and Canara banks clocked 9.6% and 5.89% to 159.8 and 187.05 respectively. Other Contributors for the PSU Bank space are IOB @ 23.20 (4.27%), Union Bank @ 39.65( 3.93%), and Bank of Maharashtra @ 21.20 (3.16%)

Other significant contributors to the Banking Space are IDBI Bank: 58.10 (19.92%) and Ujjeevan Small Bank: 23.05 (10.82%).

In the day, which belongs to the PSU Bank Stocks, others like Titan, Bajaj Auto, Bajaj Finserv, Hindalco, Heromotocorp, and Eicher Motors Contributed significantly add to the market momentum as both Nifty and Sensex closed with moderate gains.

In an otherwise bullish market tech stocks were remained weak for another day with HCL Tech stock down by 4.02%, Tech Mahindra saw a 1.84% correction, and TCS down by another 0.89% to its overnight price.

Coal India, Shree cement, Ultratech cement, ONGC, Grasim, ICICI Bank, Bharti Airtel, and M&M closed with moderate losses to their previous close.

By any standard, today's spurt in Public Sector Banks with all-around participation from almost all banks is giving a clear signal for what is in store for public sector Banks. With a strong break out of State Bank of India @ 483, which is poised for a big move, all other PSU Banks are in for re-rating for better price discovery.

The Time has come to show again and again that in a market where even the penny stocks were rewarding the shareholders, Strong Brand Names of PSU Banks cannot be signed off from participating meaningfully. Even the least risk-takers can bet on the leading PSU Banks for significant gains within a reasonable time.

The Banks Where Investors can participate without Much risk are (1) State Bank of India (2) Canara Bank (3) Indian Bank (4) Bank of Baroda (5) and Bank of India.

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