BackWhy Bank Nifty has been rising for the last two sessions — explained
Stock market today: Banking and financial stocks are in an uptrend ahead of the release of RBI policy meeting minutes and Jerome Powell's speech at the Jackson Hole meeting
PremiumStock market today: Ahead of RBI policy meeting minutes release and US Fed Chairman Jerome Powell's speech at much awaited Jackson Home meeting, which is beginning today, banking and financial stocks are in uptrend for the last two sessions. Bank Nifty index has rallied to the tune of over 950 points in last two day. Barring ?HDFC Bank shares, all Bank Nifty stocks are in green zone. Shares of IndusInd Bank, AU Small Finance Bank, ICICI Bank, Axis Bank and Bandhan Bank are among the top gainers during Thursday deals.
According to market experts, stock market is reacting to the possible outcome from RBI policy meeting minutes release and US Fed Chairman Jerome Powell's speech at Jackson Hole meeting. Powell is expected to deliver his speech on 26th August 2023 though the Jackson Hole Symposium is going to kickstart on 24th August 2023 i.e. today. They said that Jerome Powell is expected to maintain US Fed rate pause and may announce rate hike by end of 2023 as Fit credit rating has just downgraded the US credit rating. Stock market experts advised positional investors to look at PSU stocks like State Bank of India (SBI), Canara Bank, Bank of Baroda and Punjab National Bank (PNB).
Expecting buying interest in banking and financial stocks to continue further, Siddhartha Khemka, Head - Retail Research at Motilal Oswal said, "Action could continue in Banking and Financial Services ahead of the RBI policy meeting minutes release and bank loan growth data." However, the Motilal Oswal expert maintained that global uncertainty ahead of Jerome Powell's speech at Jackson Home meeting may continue to work as taper for the Indian stock market.
On why US Fed Chairman Jerome Powell's speech won't be a worry for the Indian stock market, Anuj Gupta, market expert at HDFC Securities said, "Fitch has already downgraded US credit rating and in such condition, US Fed may not want to put the US economy under stress by raising US Fed rate hike. In such condition, Jerome Powell may not announce any near term rate hike but keep this option for the year end. Market is expecting that it would attract FIIs towards Indian and other emerging markets and banking stocks may emerge favourites as it started correction much before other key benchmark indices."
Stocks to buy today
On stock to buy ahead of Jackson Home Symposium, Sandeep Pandey, Director at Basav Capital said, "One should look at PSU banks as it is expected to continue as favourite stocks for FIIs. However, one will have to choose its shares in wittiest possible manner as high interest rate regime has peaked out and now CASA has become important. In such scenario, big PSU banks like SBI, Canara Bank, Bank of Baroda and Punjab National Bank shares can be a better option."
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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