The Indian stock market snapped a six-day rally, opened on a lower note on Tuesday, November 18, on global cues. Among sectors, Nifty PSU Bank stood out as the only gainer, continuing its winning streak for the third consecutive session.
“Indian equities stretched their winning streak to six sessions, lifting the benchmark Nifty to 26,012 (+0.40%). Nifty Midcap stole the show again, notching a fresh all-time high at 61,180 (+0.75%). Market breadth held steady with an AD ratio of 1:1, while sectoral momentum stayed broadly positive, led by PSU Banks and Auto, which continued to outperform,” said ICICI Securities in a note.
PSU banking stocks rebounded from today’s low to gain up to 2% despite weak market sentiments.
Bank of Maharashtra was among the biggest gainers, surging nearly 1.65% to ₹60.90 apiece on BSE. IDBI Bank and Central Bank stood at the second and third spot, gained over 1.37% and 1.36% respectively, during an intraday session on November 18.
Meanwhile, other PSU banking stocks also turned green despite weak market sentiments. The Bank of Baroda share price was up 0.69% on Tuesday. At 9:35 am, the BoB stock hit an intraday high of ₹289.65 apiece.
Punjab and Sindh Bank and UCO Bank were up 0.52% and 0.89% on BSE.
On the other hand, Union Bank slipped 0.2% and Indian Overseas Bank declined 0.1%, making them the top laggards.
PSU Bank outlook in the near term
According to ICICI Direct, the PSU Bank Index continues to outperform, maintaining a higher-high, higher-low formation for the tenth-straight week on the back of strong Q2 earnings.
“In near term, index is witnessing series of healthy consolidation after sharp up move. However, any dip from hereon should not be construed as negative instead capitalized it as buying opportunity in quality stock as strong support is placed near 7,800, aligning with the 38.2% retracement of the latest rally (6,730–8,391),” the brokerage firm said.
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