BackBoB, PNB to Canara Bank: These four Nifty PSU bank shares hit 52-week high. Experts see more upside
Nifty PSU index has hit record high but large-cap Nifty PSU banks that have managed to improve their net interest margins and CASA are going to continue rally in short to medium term, say stock market experts
PremiumStock market today: Despite profit booking trigger in small-cap and mid-cap index stocks, PSU bank shares have remained bulls' favourite in Indian stock markets. In early morning deals on Dalal Street four state-owned banks — Bank of India, Bannk of Baroda, Canara Bank and Punjab National Bank shares climbed to a new 52-week.
Bank of Baroda share price today opened upside and went on to hit a new 52-week peak of ₹213.20 apiece on NSE, Bank of India shares today opened upside and hit a new 52-week high of ₹107.80 per share, Canara Bank shares today hit a new 52-week high of ₹368.70 per equity share in NSE whereas PNB shrae price today had a gap up opening leading to fresh 52-week high of ₹73.90 per share withing few minutes of stock market's opening bell today.
However, stock market experts believe that rally in PSU bank shares may further continue as large-cap PSU banks still have potential to move upside. They said that state-owned large-cap banks that has reported im provement in net interest income and CASA would benefit much after RBI's move to discontinue incremental CRR. They said that PSU banks like Bank of Baroda, Canara Bank, State Bank of India (SBI), Unhion Bank of India, Punjab National Bank (PNB) are going to benefit and compete against big private lenders like HDFC Bank and ICICI Bank and advised investors to maintain ‘buy on dips’ strategy in these state-owned bank shares.
Why PSU bank shares are skyrocketing?
On why PSU bank shares are in uptrend, Sandeep Pandey, Director at Basav Capital said, “In post-Covid scenario, PSU banks have managed to improve their net interest income duue to high interest regime. But, after the high interest regime peaked out, only those banks are expected to report strong financials who have a better CASA. So, state-owned large-cap banking stocks are comparatively better placed that its peers. So, this rally in PSU bank shares and Nifty PSU index is expected to continue further as both DIIs and FIIs are going to put their money behing thse PSU bank shares."
Stocks to buy today
On state-owned bank shares to buy today, former Deputy Vice President at HDFC Bank said, “Union Bank of India, BoB, Canara Bank, SBI and PNB are one of those state-owned banks that one can look at buying today as large-cap stocks are yet to participate fully in current stock market rally."
eeceipa 03Advising sharesholders of BoB, PNB and Canara Bank, Sumeet Bagadia, Executive Director at Choice Broking said, “BoB share price has taken support at ₹200 and it may go up to ₹230 apiece levels in near term. PNB share price has immediate support placed at ₹66 and its news targt is ₹80 per equity share. Likewise, Canara Bank shares have new suppport at ₹350 while its fresh target is ₹380 to ₹400."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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