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Business News/ Markets / Stock Markets/  Budget 2024: PNB, BoB to SBI — experts recommend these five PSU bank stocks to buy today
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Budget 2024: PNB, BoB to SBI — experts recommend these five PSU bank stocks to buy today

PSU banks are expected to benefit from the interim budget 2024 as the fiscal deficit is expected to decrease. Increase in fund allocation to infrastructure sector to fuel corporate credit demand

Budget 2024: Experts have recommended five PSU bank stocks to buy today —Union Bank of India, Canara Bank, SBI, PNB, and Bank of Baroda. (Photo: iStock)Premium
Budget 2024: Experts have recommended five PSU bank stocks to buy today —Union Bank of India, Canara Bank, SBI, PNB, and Bank of Baroda. (Photo: iStock)

Budget 2024 impact: Despite the Indian stock market witnessing selloff pressure after Finance Minister Nirmala Sitharaman concluded her Budget 2024 speech, experts are highly bullish on the PSU bank shares. They said that an increase in the infrastructure sector by 11.1 percent and a rise in Capex to 11.1 lakh crore in FY25 is going to boost the corporate lending business of PSU banks.

Stock market experts went on to add that the Union Finance Minister has expected the fiscal deficit to remain at 5.1 percent of the GDP in FY25, which was expected at 5.8 percent in FY24. So, PSU banks will have more money for lending, and focus on the infrastructure sector would push the corporate lending demand from the PSU banks.

Triggers for PSU bank shares

Expecting PSU banks to benefit from the interim budget 2024, Sandeep Pandey, Founder of Basav Capital said, "The GoI has declared that fiscal deficit in FY25 would remain at 5.1 percent, which was at 5.8 percent in FY24. This means, the Indian economy is in the recovery mode and PSU banks will have more money in their balance sheet, which they can use for their lending business."

Also Read: Budget 2024 effect: Bajaj Auto, M&M to MSIL — auto stocks extend morning gains

On how the new business would come to PSU banks, the former Deputy Vice President of the HDFC Bank said, "The GoI has increased its fund allocation to the infrastructure sector by 11.1 percent in FY25 and it has raised Capex to 11.1 lakh crore. This means the focus on the infrastructure sector is expected to continue fueling the corporate credit demand in the next few financial years. Hence, big PSU banks are expected to benefit from this sustained corporate lending demand."

PSU bank stocks to buy

On PSU bank stocks that one can look at, Sandeep Pandey said, "PSU bank shares like Canara Bank, State Bank of India, Bank of Baroda (BoB) and Punjab National Bank (PNB) can be a good stock to buy after the presentation of the interim budget 2024."

Also Read: On RBI's crackdown, and what next for Paytm

On which banking stock to buy after the interim budget 2024, Shiju Koothupalakkal, Technical Analyst at Prabhudas Lilladher said, "One can look at the Union Bank followed by Canara Bank and SBI.

SBI share price outlook

“SBI share price after the recent gradual slide witnessed has recovered and indicated a breakout above the falling channel at the 640 zone to improve the bias with RSI also well placed after cooling off from the overbought zone. We expect for further rise with the next initial target of 660 levels visible. A decisive breach above shall confirm a breakout for the next higher targets of 695 and 715 levels expected," said Prabhudas Lilladher expert.

Union Bank of India share price outlook

Shiju went on to add that the Union Bank of India share has been in a strong uptrend with higher targets of 155 and thereafter 167 levels visible with near-term support maintained at 137 levels and with the RSI also well placed, there is much upside potential visible in the stock.

Canara Bank share price outlook

Shiju of Prabhudas Lilladdher went on to add that the Canara Bank shares continue to surge ahead with a strong uptrend maintained and currently making fresh high has once again strengthened the trend anticipating further rise with support maintained at 475 levels. The major support would be lying near the 50EMA level of 440 zone below which the overall trend would turn weak.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions. 

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Published: 01 Feb 2024, 01:18 PM IST
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