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Business News/ Markets / Stock Markets/  Nifty PSU Bank extends gains for the 5th straight session; IOB top gainer
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Nifty PSU Bank extends gains for the 5th straight session; IOB top gainer

Shares of Punjab National Bank hit a 52-week high of ₹87.2 apiece. From the March 2023 low of ₹44.1 apiece, the stock has gained 97.73% to date. With a year-to-date return of 53.76%, the stock secured the third position among the top-performing stocks in the index.

In terms of financials, PSU banks posted another stellar performance for the September-ending quarter, reporting a net profit of ₹33,643 crore. (AFP)Premium
In terms of financials, PSU banks posted another stellar performance for the September-ending quarter, reporting a net profit of 33,643 crore. (AFP)

Sustaining its bullish trend for the fifth successive trading session, the Nifty PSU Bank index saw a notable 0.83% surge in today's trade (Thursday), achieving a historic peak at 5,487 points. Out of the 12 index constituents, seven closed positively. 

Indian Overseas Bank led the gains with a 3.4% increase, followed by Indian Bank and Punjab National Bank, recording gains of 3.1% and 1.6%, respectively.

Also Read: Nifty 50, Sensex snap 7-day winning streak; mid, smallcaps outperform; RBI MPC outcome in focus

According to domestic brokerage firm Motilal Oswal, the recent strong performance of the BJP in state elections has instilled confidence of political stability for 2024. This positive outlook bodes well for India's macroeconomic and policy momentum, especially considering the country's leading growth among major economies in terms of both GDP and corporate earnings. This, in turn, could boost financial and banking activities going forward.

Shares of Punjab National Bank hit a 52-week high of 87.2 apiece in today's trade. From the March 2023 low of 44.1 apiece, the stock has gained 97.73% to date. With a year-to-date return of 53.76%, the stock secured the third position among the top-performing stocks in the index.

Also Read: Punjab National Bank stock gained 53% in CY23; should you buy?

Similarly, Bank of India shares also touched a new 52-week high of 118.2 apiece. This year so far, the stock has delivered a return of nearly 29%.

Zooming out, the Nifty PSU Bank index rallied 26.64% this year, outperforming the benchmark Nifty 50 index, which delivered a return of 15.44%.

In terms of financials, PSU banks posted another stellar performance for the September quarter (Q2FY24), reporting a net profit of 33,643 crore. During the July–September period of the previous fiscal, all 12 state-owned banks recorded a net profit of 25,684 crore.

Meanwhile, domestic equity benchmark indices - Nifty 50 and the Sensex - snapped their seven-day winning streak amid profit booking in select heavyweights. 

The Nifty 50 experienced a modest dip of 0.17%, closing at 20,901 points in today's session. However, the index maintained its position above the 20,900 level for the second consecutive trading session. The S&P BSE Sensex declined by 0.19%, settling at 69,521 points.

Market experts suggest that investor attention has shifted towards the upcoming monetary policy decisions of the Reserve Bank of India (RBI) and the US Federal Reserve.

"The market took a breather, the investors are in a wait-and-watch mode ahead of the monetary policy announcement. A better-than-estimated Q2 GDP growth, an ease in global oil prices, and a drop in global bond yield will be the silver lining for the MPC. However, the expectation of a rise in domestic November inflation, a drop in Rabi cultivation, and an increase in foodgrain prices will influence the RBI to adopt a cautious approach in the short term," said Vinod Nair, Head of Research at Geojit Financial Services.

Also Read: RBI Monetary Policy Meet underway: Key things to watch out for

On the technical front, Rupak De, Senior Technical Analyst at LKP Securities, said, "The Nifty remained sideways during the session, hovering within the bands of 20,850–20,950. Sentiment remains somewhat cautious ahead of the RBI policy meeting. The near-term trend remains sideways to weak as long as it stays below 21,000, a psychologically crucial level. A decisive breakout above 21,000 might induce a resumption of the uptrend. Until then, we anticipate weakness over the near term."

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Published: 07 Dec 2023, 05:23 PM IST
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