Banking stocks were in the limelight on Thursday. Nifty Bank and Nifty Private Bank was up 2 percent, Nifty Financial Services gained nearly 3 percent while Nifty PSU Bank was up 1 percent.
“The entire market, including banking stocks, had fallen quite a bit in anticipation of the US Fed Outcome and now that the event has passed, investors are buying the dip,” said Vinit Bolinjkar, Head of Research, Ventura Securities.
In the past month, the Nifty Bank index fell nearly 3 percent and Year-to-Date, it was up merely 3 percent.
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Bolinjkar believes that a big capital expenditure cycle would mean corporate lending would improve, which will be a positive for lenders. Plus, non-performing assets have bottomed out, he feels.
He likes private banks and also prefers Canara Bank, State Bank of India and Bank of Baroda.
At 1357 IST, shares of Kotak Mahindra Bank, RBL Bank, Axis Bank, HDFC Bank, State Bank of India, Bandhan Bank, IndusInd Bank and Punjab National Bank were up about 1-4 percent.
Kkunal Parar, Vice President-Research at Choice Broking, believes large-cap banking stocks are a good buy in this market. He likes HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank in the large-cap space and sees upside potential of 8-10 percent.
According to Jay Thakkar of Marwadi Shares & Finance, RBL Bank is a buy with a stop loss of Rs 129 for targets of Rs 147-155.
Gurmeet Chadha, Co-Founder & CEO, Complete Circle Consultants believes private sector banks have seen a healthy correction.
"HDFC also, in particular, saw time correction before this price correction happened. I think they've gained market share, overall they carry cumulative and floating provisions which means if there are any credit shocks, later on, they have the ability to deal with it. So it looks very reasonable," said Chadha.
(Edited by : Akanksha Upadhyay)
First Published: Mar 17, 2022 2:30 PM IST
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