BackNifty PSU Bank up over 2% on JP Morgan's India bond inclusion; Canara Bank, Union Bank shares touch 52-week high
Nifty PSU Bank index surges 2% as JP Morgan includes Indian govt bonds in emerging-market debt index.
PremiumNifty PSU Bank index jumped over 2% on Friday's trading session after JP Morgan decided to include Indian government bonds in its widely watched emerging-market debt index. Shares of Central Bank of India, Canara Bank, Indian Bank , Union Bank of India, and Bank of Baroda gained 4% to 5% on Friday's session. Canara Bank share price and Union Bank of India shares touched new 52-week high today, while State Bank of India shares were trading close to their 52-week high.
All the 12 Nifty PSU bank constituents were trading in green today. Nifty PSU Bank index opened at 5,094.70 and touched intraday high of 5,231.85 and low of 5,089.80.
Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, stated that despite the recent decline in large-cap private banks, this sector has shown resilience by consistently advancing.
Despite the market's volatility this week, the index has surged by over 3%. The prevailing sentiment remains optimistic, as any downward movement is met with buying interest. Therefore, traders are recommended to refrain from making contrary bets and instead view dips as favorable opportunities. In terms of key levels, 5000 serves as immediate support, while 5450 acts as a resistance point.
The Nifty PSU Bank index increased by almost 5% during Monday's trading session (September 18), hitting a record high of 5,292. Eleven of the index's twelve components set new 52-week highs during the session.
The Government Bond Index-emerging markets (GBI-EM) index and the index suite, which are benchmarked by around $236 billion in international funds, will incorporate India's local bonds, according to JP Morgan.
Starting on June 28, 2024, the index provider will add the securities. According to a statement, India's weight on the index will not exceed 10%.
According to CA Rakeshh Mehta, Chairman Mehta Equities of Mehta Group, India’s inclusion in JP Morgan emerging markets bond index is great news which would give a booster access to global investors to participate in the world’s fastest-growing large economy that would offer them the highest alpha returns in the emerging region.
"I believe it is after waiting for 10 odd years India has finally been included in the JP Morgan EM Bond Index today effective 28th June 2024. The credit goes to the Govt of India regulator as well as various government organisations who made this possible in the current scenario.
The news has come at the right time when the market is under pressure and hereafter the possibility of larger FPI flows could be seen ahead of this inclusion. The Rupee would also benefit from this news. We continue to remain optimistic on a great Indian long term story. Equity markets would take this as a welcome note at the right time. We believe PSU banks will be highly focused and positively benefited," added Mehta.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
