PSU bank stocks rally 2% as investor confidence returns
State Bank of India, Bank of Baroda, and Punjab National Bank, as investors regained confidence following Thursday’s sell-off. The Nifty PSU Bank Index rose 2.0% to 6,444.60 in early morning trading, reversing the losses from the previous session.
State Bank of India saw a jump of 2.2%, trading at Rs 797.50, while Bank of Baroda and Punjab National Bank were up 2.8%, reaching Rs 235.00 and Rs 99.04, respectively. Other PSU banks, including Canara Bank and Bank of Maharashtra, gained 2.5% and 2.7%, respectively.
This recovery follows a sequence of losses due uncertainty, as concerns over PSU banks' exposure to the Adani Group had weighed on the sector. The Indian conglomerate, once a darling of the Indian stock market, faced a dramatic fall from grace amid allegations of stock manipulation and corporate governance issues, raising fears about loan defaults among banks heavily involved with Adani's ventures. Notable lenders like SBI and Bank of Baroda have significant exposure to the group, contributing to initial investor concerns.
Shares of Adani Group companies had fallen sharply on Thursday after US prosecutors charged the billionaire chairman of the Indian conglomerate in an alleged bribery and fraud scheme.
Also read | Adani Group stocks extend losses, drop up to 11% after Kenya cancels deals following US charges
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