homemarket NewsNifty PSU Bank index market capitalisation crosses Rs 12 lakh crore Here are its top contributors
Nifty PSU Bank index market capitalisation crosses Rs 12 lakh crore - Here are its top contributors
The top gainers over the past three years do not include India's largest lender, State Bank of India. In fact, despite doubling in value over the past three years, SBI is the biggest underperformer on the index when compared to its peers.
The Nifty PSU Bank index has crossed Rs 12 lakh crore in market capitalisation in today's (September 18) trading session. The index has added Rs 2.5 lakh crore in market capitalisation in 10 months, with the latest Rs 1 lakh crore coming in just seven trading sessions. The index crossed the mark of Rs 10 lakh crore in market capitalisation for the first time in November 2022.
The index of India's state-run lenders is trading close to a record high. It has almost tripled in value from the start of 2021. The index is now up over 20 percent so far in 2023. This comes after the index gained 71 percent in 2022 and another 44 percent in 2021.
All constituents of the PSU Bank index have more than doubled in value during this period. This is also the third straight year in which the index has given positive annual returns.
The last time the PSU Bank index had gained for three back-to-back years was the first three years of its inception between 2005 and 2007.
The top gainers over the past three years do not include India's largest lender, State Bank of India. In fact, despite doubling in value over the past three years, SBI is the biggest underperformer on the index when compared to its peers.
The top-performing bank over this period was Indian Bank, followed by Indian Overseas Bank and Punjab & Sind Bank.
Heavyweights would feature in the list of top point contributors as all stocks have doubled during this period. Bank of Baroda leads that list, followed by SBI and Canara Bank.
"We have quite a large overweight position in PSU banks. We do believe that PSU banks are on the verge of a big rerating," Vikas Khemani of Carnelian Capital Advisors told CNBC-TV18 on September 15.
"As we advance and sustain above 5,000 levels, then the index might break the all-time high of 5,375, which it hit in November 2010," Jigar Patel of Anand Rathi said.
Ruchit Jain of 5paisa.com believes that the trend of the PSU Bank index remains positive as long as it remains above its 20-DMA support of 4,800.
The PSU Bank index is currently up for the fourth day in a row and has gained in seven out of the past eight trading sessions.
(Edited by : Amrita)
First Published: Sept 18, 2023 12:06 PM IST
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