Union Bank of India stock rallies amid market downturn

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Union Bank of India stock rallies amid market downturn
Credit: © Reuters.

On Wednesday, Union Bank of India (NS: UNBK )'s shares rallied nearly 3% intraday, trading 3.08% higher at INR 101.90 on the NSE at 03:22 ET (07:22 GMT), even as the benchmark indices and other PSU bank stocks fell deep in red. This comes within the same week as the government extended the term of Nitesh Ranjan as executive director of the bank by another two years, according to a filing with the BSE on Monday. Ranjan’s current term is set to end on March 9, 2024.

The Union Bank of India (NS: BOI ) has a market capitalization of INR 73,309 crore. The President of India, acting as a promoter, holds an 83.49% stake in this public sector bank. DIIs and the public own 7.88% and 7.16% respectively, while FIIs hold the remaining 1.46% stake in the bank.

In its July 22 research report, brokerage firm Motilal Oswal (NS: MOFS ) expressed bullish sentiments about Union Bank of India and assigned a ‘buy’ rating to the stock with a target price of INR 110. Over the last six months, Union Bank of India stock has given a return of 55.91%.

However, the overall Indian share market closed with deep cuts on Wednesday amid selling in blue-chips such as HDFC Bank (NS: HDBK ) and Reliance Industries (NS: RELI ) (RIL). The S&P BSE Sensex was down 796 points or 1.18% at 66,800.84, and the NSE Nifty was down 231.9 points or 1.15% at 19,901.4 levels.

Globally, markets have been seesawing for weeks on uncertainty about whether the Federal Reserve is done with its market-shaking hikes to interest rates. Asian shares declined on Wednesday as markets awaited a decision on interest rates by the Federal Reserve. On Wall Street, the S&P 500 slipped 0.2% to 4,443.95, the Dow Jones Industrial Average dropped 0.3% to 34,517.73, and the Nasdaq composite lost 0.2% to 13,678.19.

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