Back'More catching up is possible' in Nifty Bank, says Geojit Financial
The Bank Index is still below its peakGeojit Financial Services expects good Q3 earnings from major private lenders
PremiumIndian markets hit fresh highs today as the Nifty neared the 14,000 level. Banking stocks powered the gains with Nifty Bank index rising over 1% today. Though broader market Nifty has been on a record-breaking streak, the Nifty Bank index is still off its 52-week high and some analysts expect the banking stocks to catch up soon.
The Bank Nifty index was up 1% at 31,159. Earlier this year in January, Bank Nifty had hit its 52-week high of 32,347.
'The Bank Index is still below its peak. So, some more catching up is possible there as the Q3 results from private sector banking majors will be good," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
On the overall markets, he says, "liquidity continues to drive markets" and "aggressive buying at peak valuations is not advisable".
"With two more days to go in this month, FII inflows are likely to cross ₹60000 crore in December on top of the ₹60300 crore that came in November. India's performance is in line with the performance of other emerging market peers but valuations are much higher. Mid-small-caps which have outperformed during the last 6 months have some more steam to go up," he added.
Indian markets however pared some gains as the session progressed. The Nifty was up 0.25% at 13,908.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments, said: "We have hit 13900 this morning and the 14000 mark should now be a mere formality to achieve. There is always a possibility for the markets to shy away from that level since it's a psychological whole number! If we sustain 14000, we should look out for 14200. During the recent correction, the Nifty has made a good base at the 13100-13200 level. Until that does not break, we are in bullish territory."
In encouraging news on the COVID-19 vaccine front, Indian vaccine maker Serum Institute said it expected the British and Indian governments to approve the Oxford/AstraZeneca shot for emergency use within a few days. Hopes that a U.S. pandemic relief package would be expanded were aiding investor sentiment globally, boosting broader Asian shares.
Among the banking stocks, IndusInd Bank was up 3% while HDFC Bank and SBI rose about 1% each.
(With Agency Inputs)
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