Nifty PSU Bank hits 52-week high, up over 10% in September; BoB, PNB, SBI among top picks by analysts
Nifty PSU Bank index hit a fresh 52-week high on Wednesday, September 13, jumping over 4 per cent to 4,948.55 by the end of the session. PSU bank shares have climbed more than 10 per cent so far in September alone, pushing its sectoral index to multi-year highs. The 12-pack index of public sector undertaking (PSU) bank shares is trading with gains led by Punjab National Bank, rallying as high as 9 per cent today.
‘’The Nifty PSU Bank index has broken out to multi-year highs, gaining more than 10 per cent in September alone. The chart pattern suggests that this is just the beginning of a rally, but intermediate corrections cannot be ruled out,'' said Santosh Meena, Head of Research, Swastika Investmart Ltd. ‘’The 4,600-4,450 range has become a strong support zone for the Nifty PSU Bank index.
If the index sustains above this level, it could move up to the 5,800-6,000 range,'' added Meena. On Wednesday, the broader Nifty closed above the 20,000 mark for the first time, rallying 76.80 points or 0.38 per cent to 20,070, its all-time closing high. Of 50 Nifty shares, 31 closed higher and 19 declined.
Market analysts have picked State Bank of India (SBI), Bank of Baroda (BoB), and Punjab National Bank (PNB) as the top PSU bank stock picks to their portfolios.
Shares of BoB gained over 5 per cent on Wednesday and settled 4.43 per cent higher at ₹208.70 apiece on the BSE. Shares of SBI gained over 1 per cent to settled at ₹596.45 apiece on the BSE. Meena adds that investors can also allocate a small portion of their portfolio to smaller PSU banks, as these stocks are high-beta and have the potential to generate higher returns.
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