Invesco Mutual Fund buys stake in these 2 PSU banking stocks. Buy, sell or hold?
5 min read 21 Jan 2023, 07:52 AM ISTInvesco Mutual Fund bought 50,56,061 Bank of India shares in December 2022, which is 0.12 per cent of total paid up capital of the PSU bank
PremiumInvesco Mutual Fund has bought fresh stake in two state-owned banks — Bank of India and Union Bank of India in December 2022. As per the shareholding data of the asset management company (AMC) as on 31st December 2022, Invesco Mutual Fund bought 50,56,061 Bank of India shares, which is 0.12 per cent of total paid up capital of the PSU bank. Likewise, the AMC bought 3,21,764 Union Bank of India shares in December 2022. Apart from these two stocks, Invesco Mutual Fund added six more stocks in its portfolio in December 2022. Those six new portfolio stocks of the AMC includes GAIL (India), Berger Paints and LIC Housing Finance.
According to stock market experts, PSU bank shares have delivered whopping return to its investors in last few months and the banking theme is expected to continue this for short to medium term further. They said that upcoming budget 2023 will be the last full budget of current central government and hence development and jobs are expected to remain in focus of fast approaching union budget. As infrastructure sector has a potential to solve both developmental and job creation challenge of the government, Finance Minister Nirmala Sitharaman may announce some big infrastructure projects in the upcoming budget.
Experts went on to add that big infrastructure projects would fuel demand for big corporate loan and large corporates who had shifted to overseas for credit line due to rise in dollar rates may look at state-owned banks for credit line to their projects. As these banks have exposure in corporate lending, market sentiments have gone positive in regard to these PSU banks. They said that Bank of India shares may go up to ₹110 in short term whereas Union Bank of India share price may climb to ₹95 apiece levels.
Click here to read latest stock market news
Expecting upside in PSU bank shares ahead of budget 2023, Chandan Taparia, Derivative & Technical Analyst at Motilal Oswal said, "Current central government is expected to announce some big infrastructure project in upcoming budget as it would be its last full budget and they are expected to focus on development and job creation in this budget. So, center may focus on infrastructure sector in upcoming budget. For such infra projects, large corporates are expected to look at PSU banks, which includes Bank of India and Union Bank of India for credit line. Hence, PSU banks are expected to get benefit of government's focus on infrastructure sector. This could have been the reason for Invesco Mutual Fund and other AMCs buying stake in state-owned banking stocks in December 2022."
Advising positional investors to buy these new Invesco Mutual Fund portfolio stocks, Sumeet Bagadia, Executive Director at Choice Broking said, "Bank of India share price is looking strong on chart pattern and one can buy this stock at current price for the short term target of ₹100 and ₹110 apiece maintaining stop loss at ₹80 levels. Similarly, one can buy Union Bank of India shares at current market price for short term target of ₹90 and ₹95 apiece levels, maintaining stop loss at ₹75 mark."
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.
