Nifty PSU Bank up for eighth straight session; up ~2%

The rally in the Nifty PSU Bank index was led by gains in Vijaya Bank, PNB, Bank of India, Union Bank and Bank of Baroda.

Dec 19, 2018 06:12 IST India Infoline News Service

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The Nifty PSU Bank index rallied for the eighth consecutive session and was up ~2% in Wednesday’s trade. The Nifty Bank and Private Bank indices were also trading higher in the noon trade on the day.

The rally in the Nifty PSU Bank index was led by gains in Vijaya Bank, PNB, Bank of India, Union Bank and Bank of Baroda. Nifty PSU Bank is currently trading ~2% higher near 3,080.

Meanwhile, Nifty Bank was trading ~0.5% higher near 27,300-levels. IDFC Bank, Axis Bank, Yes Bank, and Federal Bank were up in the range of 3-1%, respectively, and led to the gains in the index.

The rise in the index could be attributed to RBI's announcement of a massive bond buyback programme for the current fiscal year to address the liquidity deficit. The move is expected to raise bond prices and boost bank Treasury profits at a time when lenders are in need of capital. The announcement came after the markets hours on Tuesday.

On the other hand, shares of housing finance companies were also trading in the green as the Reserve Bank of India (RBI) decided to ease the liquidity crunch in the sector by injecting Rs50,000cr under Open Market Operations (OMOs) in January through five auctions. Read more

The Sensex rose 105 points at 36,452, and the Nifty was up 47 points at 10,956. The market breadth was positive as 1,167 shares advanced, 485 shares declined, and 407 shares remained unchanged.

Stock view:

Vijaya Bank share price is currently at Rs46 up by Rs1.8 or 4.07% from its previous closing of Rs44.20 on the BSE.

Punjab National Bank share price is currently at Rs76.50 up by Rs2.2 or 2.96% from its previous closing of Rs74.30 on the BSE.

Bank of India share price is currently at Rs93.60 up by Rs2.25 or 2.46% from its previous closing of Rs91.35 on the BSE.

Yes Bank Ltd share price is currently at Rs181.10 up by Rs2.2 or 1.23% from its previous closing of Rs178.90 on the BSE.

Indiabulls Housing Finance Ltd share price is currently at Rs829 up by Rs52.6 or 6.77% from its previous closing of Rs776.40 on the BSE.

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