Nifty PSU Bank up over 2% on JP Morgan's India bond inclusion; Canara Bank, Union Bank shares touch 52-week high
Nifty PSU Bank index jumped over 2% on Friday's trading session after JP Morgan decided to include Indian government bonds in its widely watched emerging-market debt index. Shares of Central Bank of India, Canara Bank, Indian Bank , Union Bank of India, and Bank of Baroda gained 4% to 5% on Friday's session. Canara Bank share price and Union Bank of India shares touched new 52-week high today, while State Bank of India shares were trading close to their 52-week high.
All the 12 Nifty PSU bank constituents were trading in green today. Nifty PSU Bank index opened at 5,094.70 and touched intraday high of 5,231.85 and low of 5,089.80. Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, stated that despite the recent decline in large-cap private banks, this sector has shown resilience by consistently advancing.
Despite the market's volatility this week, the index has surged by over 3%. The prevailing sentiment remains optimistic, as any downward movement is met with buying interest. Therefore, traders are recommended to refrain from making contrary bets and instead view dips as favorable opportunities.
In terms of key levels, 5000 serves as immediate support, while 5450 acts as a resistance point. The Nifty PSU Bank index increased by almost 5% during Monday's trading session (September 18), hitting a record high of 5,292. Eleven of the index's twelve components set new 52-week highs during the session.
The Government Bond Index-emerging markets (GBI-EM) index and the index suite, which are benchmarked by around $236 billion in international funds, will incorporate India's local bonds, according to JP Morgan. Starting on June 28, 2024, the index provider will add the securities. According to a statement,
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