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Banking shares continue at their upward march with the National Stock Exchange (NSE) Bank Nifty have rallied over 1,000 points in past six trading sessions on expectation of further policy reforms from the government.
At 1433 hours, Bank Nifty was up 0.56% or 93 points at 16,563 against 0.17% fall in CNX Nifty.
In past six trading sessions, Bank Nifty has zoomed 1,021 points or 6.6% from 15,542 on October 16, compared to 3.3% rise in the benchmark index. The banking index touched a new high 16,664 in intra-day deal today.
Kotak Mahindra Bank, Indusind Bank and YES Bank are up over 2% each; hit their respective record highs on NSE. HDFC Bank, Axis Bank and ICICI Bank are trading in green, hovering nears to its lifetime highs.
According to market analyst, the private banks are steering well on all fronts - growth, earnings and asset quality. Further, Reserve Bank of India notification regarding retirement age of private bank CEO has addressed the concerns about continuity of the current management teams.
“Banks across the segment had lost pricing power during FY11-14; primarily due to sharp moderation in industrial loan growth. However, we believe various initiatives by new NDA government will revive economic activities and will lead to revival in capex cycle and in turn will boost the credit growth,” point out analysts at Karvy Stock Broking in a report.
Valuations multiple of the public sector banks are still far below their historical average. This is primarily due to higher degree of uncertainty on their asset quality and operating performance, said analyst in a recent report.
State Bank of India, Union Bank of India, Andhra Bank, Bank of India, Bank of Baroda, Indian Overseas Bank and Canara Bank are from the public sector banks up 1-3% on NSE.
At 1433 hours, Bank Nifty was up 0.56% or 93 points at 16,563 against 0.17% fall in CNX Nifty.
In past six trading sessions, Bank Nifty has zoomed 1,021 points or 6.6% from 15,542 on October 16, compared to 3.3% rise in the benchmark index. The banking index touched a new high 16,664 in intra-day deal today.
Kotak Mahindra Bank, Indusind Bank and YES Bank are up over 2% each; hit their respective record highs on NSE. HDFC Bank, Axis Bank and ICICI Bank are trading in green, hovering nears to its lifetime highs.
According to market analyst, the private banks are steering well on all fronts - growth, earnings and asset quality. Further, Reserve Bank of India notification regarding retirement age of private bank CEO has addressed the concerns about continuity of the current management teams.
“Banks across the segment had lost pricing power during FY11-14; primarily due to sharp moderation in industrial loan growth. However, we believe various initiatives by new NDA government will revive economic activities and will lead to revival in capex cycle and in turn will boost the credit growth,” point out analysts at Karvy Stock Broking in a report.
Valuations multiple of the public sector banks are still far below their historical average. This is primarily due to higher degree of uncertainty on their asset quality and operating performance, said analyst in a recent report.
State Bank of India, Union Bank of India, Andhra Bank, Bank of India, Bank of Baroda, Indian Overseas Bank and Canara Bank are from the public sector banks up 1-3% on NSE.
