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PSU bank stocks: PSU bank stocks shine on divestment hopes, could gain 10-15% this month


Mumbai: PSU bank stocks such as SBI, Bank of Baroda, Canara Bank and PNB have been vying for market attention lately, having largely outperformed their private sector peers over the fortnight through May 11 on hopes of divestment surrounding state-owned banks.
Traders, however, wonder whether the rally has more legs. Market mavens believe 10-15 per cent more upside is possible this month itself if the Nifty holds 14,400-14,450 levels as Nifty PSU Bank index has risen after hitting an intermediate bottom near 1,947 on April 20 through 2,239.7 on May 11.
“If the 14,400 support breaks down, all bets are off, said Rajesh Palviya, technical head, Axis Securities, whose preferred picks are SBI and Bank of Baroda. ....

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PSU bank stocks: PSU bank stocks plunge up to 12% on asset quality woes


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NEW DELHI: Government-owned banks were hammered mercilessly on Monday on fears that the return of state-wide lockdowns, like one widely speculated in Maharashtra, could dent asset quality and loan growth going ahead.
Nifty PSU Bank plunged 9.26 per cent led by
Indian Bank, Canara Bank, Punjab National Bank and Bank of India that dropped over 10 per cent each in a single session. .
Investors are already concerned about the extent of the impact of the national lockdown on balance sheets of banks, and the renewed Covid restrictions have augmented those fears.
“The gap-down opening on Monday s trade widened as the day progressed with all sectoral indices in the red as investors worried about the economic fallout on account of the surge in coronavirus cases. Asset quality concerns spooked banks and PSU stocks across sectors were the worst hit amidst lockdown worries,” said S Ranganathan, Head of Research at LKP Securities. ....

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4 PSU bank stocks rally up to 10%, here's why


4 PSU bank stocks rally up to 10%, here s why
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Last Updated: Apr 01, 2021, 10:25 AM IST
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NEW DELHI: Shares of four PSU banks jumped up to 10 per cent after the government infused Rs 14,500 crore capital in them in a bid to improve their financial health.
Indian Overseas Bank,
Indian Overseas Bank surged 10 per cent to hit a high of Rs 17.60.
Bank of India climbed 6.55 per cent to Rs 72.30. Central Bank of India advanced 4.89 per cent to Rs 17.15. UCO Bank gained 4.64 per cent to Rs 11.50.
According to a government notification, Rs 4,800 crore has been provided to Central Bank of India, Rs 4,100 crore to Indian Overseas Bank, and Rs 2,600 crore to UCO Bank. ....

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