Nifty Bank surges over 3% to mark biggest weekly gain in 2024; Bandhan Bank climbs 8%, IDFC Bank up 7%
Bandhan Bank, which finished with a gain of 7.6%, while IDFC Bank also ended the week with a 7.10% gain.Also Read: HDFC Bank shares snap a 7-day winning streak; time to book profit?Heavyweights including HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, and IndusInd Bank all concluded the week with gains ranging between 1.50% and 4.8%. Additionally, Federal Bank ended the week with a gain of 2.5%.Analysts attributed the strong rebound in shares of private banks to robust foreign portfolio investor (FPI) inflows during the week, coupled with profit booking in sectors like auto and FMCG, which had experienced substantial gains in recent weeks."The domestic market witnessed minor profit booking amid concerns over the slow progress of the monsoon, resulting in underperformance in the FMCG sector.
The heatwave in Northern India is driving consumer durables stocks up," said Vinod Nair, Head of Research at Geojit Financial Services.Also Read: From TCS to Infosys, IT stocks jump 2-3% on Accenture’s Q3 results. Is the worst over for tech firms? Experts answer"The global markets were subdued as weak guidance from Accenture led to profit booking in US tech stocks.
Conversely, domestic IT stocks saw buying interest as market participants appeared to have factored in weaker earnings. Attention is now focused on the upcoming GST meeting, where the potential rationalization of GST rates in certain sectors is under discussion," he further added.
Additionally, analysts favored private-sector banks over their public-sector peers, citing reasonable valuations.Global brokerage firm CLSA has shown a preference for private sector banks over their public sector counterparts, noting their currently reasonable valuations. According to CLSA,
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