Nifty PSU Bank extend gains for the 5th straight session; IOB top gainer

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Indian Overseas Bank led the gains with a 3.4% increase, trailed 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. Meanwhile, 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%, it 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 in today's trade. 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-ending quarter, 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.