🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Nifty PSU Bank climbs 17% YTD as funds cut mid, small-cap bank holdings

EditorAmbhini Aishwarya
Published 21-11-2023, 05:28 pm
© Reuters.

In the current market, driven by a surge in retail investor enthusiasm, the Nifty PSU Bank index has seen a significant rise of 17% year-to-date. This increase comes even as mutual funds have reduced their holdings in various banks within the mid-cap and small-cap segments. During October, notable reductions were observed in mutual funds' stakes in UCO Bank (NS:UCBK), Indian Overseas Bank (NS:IOBK), and the Bank of Maharashtra (NS:BMBK). Specifically, holdings in UCO Bank decreased from 1.04 crore to 0.99 crore shares, Indian Overseas Bank from 1.37 crore to 1.24 crore shares, and the Bank of Maharashtra from 3.22 crore to 2.93 crore (1 crore = 10 million) shares.

Bandhan Bank (NS:BANH) and Central Bank of India (NS:CBI) also experienced significant sell-offs by mutual funds. In addition to these mid-cap banks, Ujjivan Small Finance Bank (NS:UJJI) was among the small-cap banking stocks affected by sales, along with other industry players such as Alembic Limited and ITD Cementation (NS:ITCM).

Geojit Financial Services has expressed caution regarding this trend. They warned investors about making speculative moves on small-cap stocks that lack fundamental backing amid the heightened market activity today. The brokerage's advice suggests a more measured approach to investing in this sector, particularly given the volatile nature of smaller cap stocks compared to their larger counterparts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.