Banking stocks likely to lead market rally

Published 29-05-2023, 10:27 pm
Banking stocks likely to lead market rally

New Delhi, May 29 (IANS) Bank Nifty has been the biggest outperformer in recent months as good buying interest is seen across financial stocks.

Sandeep Gupta, Senior Group VP & Head of Dealing & Advisory - Broking & Distribution, MOFSL said the Index made a new all-time high of 44,483 mark on Monday, compared to its previous high of 44,151 made in December 2022.

Gupta said earning momentum continued for banking stocks as most banks reported strong results. Apart from further expansion in margins, asset quality too continued to improve. Loan book growth has been healthy across segments.

The Index is witnessing a strong breakout and could see further momentum from here on and the Index can now head towards 45,000 to 46,000 zones in coming sessions.

Gupta said apart from BFSI stocks, the investors at large are getting more active on mid and small caps where there has been a good momentum built in last few weeks.

"We are also seeing some buying happening on mid cap IT stocks lately after Nasdaq showed strong recovery in last few months and moving near to its 52 week high levels. Overall the participation on the retail investors are seeing good traction post momentum in broader markets," he added.

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said the Bank Nifty index continued to be dominated by bulls as they maintained their grip on the market. The index successfully surpassed the immediate hurdle of 44,000, indicating the strength of the bullish trend. The next resistance level on the upside is now identified at 45,000.

Vinod Nair, Head of Research at Geojit Financial Services, said: "The domestic benchmarks experienced a strong rally and came close to its life-time highs, primarily driven by positive global cues and robust predictions of domestic economic growth.

"An in-principle approval from US leaders for raising the US debt ceiling has generated optimism among global investors, who are now anticipating the next monetary plan of the Fed and economic data points. Meanwhile, the US PCE inflation rate that came in higher than anticipated raised the prospect of another rate hike by the Fed in its June meeting."

--IANS

san/d

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.