PSU Banking Stocks: On the day of the budget, there was a trend of decline in the shares of public sector banks, but today they have strengthened once again and a stock reached a record high of 52 weeks.
PSU Banking Stocks: Union Finance Minister Nirmala Sitharaman presented the budget for the next financial year 2022-23 yesterday (February 1). The response of public sector banks regarding this budget was negative yesterday. Before the presentation of the budget, the country’s largest bank SBI had strengthened more than 2 percent, but after the announcement of the budget, it fell more than 3 percent in intra-day and was once the worst performing stock on the Sensex. . At the end of the day, it closed with a fall of one percent. Apart from SBI, the position of shares of other public sector banks was also not good. However, as of today, the shares of all public sector banks are looking strong and three stocks are close to the 52-week record high.
Missing Expectation from Budget: These expectations were not fulfilled by the budget, if these schemes of agriculture sector get less money, then the gold is shining.
Prices of two banks near record high of 52 weeks
- On the day of the presentation of the budget, SBI had a declining trend, but today it has reached the record price of 52 weeks with a jump. Its 52-week record price is Rs 543.95 and today it has reached a price of Rs 539.30 on NSE in intra-day.
- Canara Bank, the favorite PSU bank of veteran investor Rakesh Jhunjhunwala, also weakened in intra-day yesterday, but today it is seeing a jump of about 3.5 percent on the NSE. Today in intra-day it reached a record high of 52 weeks i.e. Rs 269.45. Jhunjhunwala, who is called the Warren Buffett of India, holds 1.6 percent stake in Canara Bank.
- Apart from SBI and Canara Bank, another stock has reached near record high of 52 weeks. Bank of Baroda reached a price of Rs 108.85 in intra-day today on NSE, while its 52-week record price is Rs 109.30.
- On NSE today, IOB, UCO Bank and Bank of India gained more than 1 percent, J&K Bank over 2.5 percent, Canara Bank more than 3 percent, Union Bank more than 4 percent and Indian Bank up more than 6 percent is visible.
- There is a jump of about one and a half percent in Nifty Bank.
Selling in public sector banks on budget day
Before the next year’s budget was presented, there was a jump in the shares of public sector banks. Investors expected that the government would make a special announcement for the banks during the Corona epidemic in the budget. However, the Finance Minister did not make any announcement to infuse additional capital in banks. In such a situation, the immediate reaction of investors was negative, but in view of the decline in bad loans of banks and the improving condition of the financial sector, today again the buying trend is visible.
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