Bank Nifty on fire, logs fresh high for second session in row

Market


MUMBAI : The Bank Nifty logged a fresh record high for the second session running Wednesday led by Kotak Bank and HDFC Bank.  

The 12 constituent index hit a fresh high of  42,611.75 , before paring some gains to close up 0.38% at 42,535.  

Kotak Mahindra Bank broke out , gaining 2.8% to close at Rs1,965.9, followed by HDFC Bank , which closed a percent higher at Rs1,632.90. 

 “Kotak Bank and HDFC Bank will lead the index higher from hereon supported by the likes of ICICI Bank, Axis and SBI,” said Gautam Arora , derivatives analyst at Religare Broking . “Kotak has broken above a crucial level of 1,940 and will breach the 2000 mark shortly while we are targeting 1,700 plus levels for HDFC Bank in the short term.” 

Religare Broking’s short term Bank Nifty target is 43,500-44,000 .  

 

“We are positive on banking and now even the smaller PSUs like Bank of India and Union Bank of India have begun performing alongside the heavyweights like SBI and others,” Siddhartha Khemka , head of research retail, Motilal Oswal Financial Services .  

The Bank Nifty has risen 32.5% from its 52 week low of 32,155.35 on March 8 outperforming the Nifty which at Wednesday’s close of 18,410 trades a percent below its record high of 18,604.45 hit on October 19 last year .  

 Expectations of incremental credit growth and lower provisions have put banks on top of investor charts.  

  “Earnings of Private Banks were in line with our estimate driven by healthy loan growth, margin expansions and continued moderation in provisions. PSBs reported an improvement in operating performance, led by a robust pick-up in loan growth (3-8% QoQ) across all banks, aided by a sharp recovery in the corporate segment,” Motilal Oswal said in its earnings review for Q2FY23. 

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.

More
Less



Source link

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments