Nifty PSU Bank Hits New High in Weak Session: PSB Soars 20%, SBI Nears 52-Wk High

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Nifty PSU Bank Hits New High in Weak Session: PSB Soars 20%, SBI Nears 52-Wk High
Credit: © Reuters.

By Malvika Gurung

Investing.com -- The domestic market traded on a weak note on Tuesday amid downcast global cues on fears that the Fed would continue its aggressive hike of interest rates following an unexpectedly better performance of the US services industry activity in November.

While the benchmark indices Nifty50 and Sensex declined almost 0.35% each towards the end of the session, the sectoral index Nifty PSU Bank hit a new 52-week high at 4,277.75 on Tuesday, outperforming all the other sectoral peers.

Constituents of the index, Punjab & Sind Bank (NS: PUNA ) skyrocketed 20% in the day and hit a fresh 52-week high at Rs 30/share, while Bank of India (NS: BOI ) and Bank of Baroda (NS: BOB ) also hit respective highs on Tuesday.

In the one-year period, Nifty PSU Bank has jumped by 59.64%, compared to an 8.41% rise in the benchmark index Nifty 50 .

Further, the country’s largest lender State Bank of India (NS: SBI ) neared its 52-week high of Rs 622.7 apiece on Tuesday, approaching a day’s high of Rs 619.8/share.

According to the domestic brokerage firm Axis Securities, state-owned lenders have made a sharp recovery, thanks to superior asset quality and double-digit credit growth, along with better-than-expected quarterly results.

Read Also: Morgan Stanley (NYSE: MS ) Highly Bullish on These PSU Banks, Hikes Target Prices

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