Nifty PSU Bank index m-cap crosses Rs 10 trillion in intra-day trade

The index hit an intra-day high of 4,145.45 before ending at 4,049, up 0.05%; m-cap at close was Rs 9.9 trillion

The market capitalisation of Nifty PSU Bank index constituents crossed Rs 10 trillion on an intra-day basis on Friday.

The index hit an intra-day high of 4,145.45 before ending the session at 4,049, a gain of 0.05 per cent. The combined market capitalisation at close stood at R 9.9 trillion.

The PSU bank index has outperformed both the Nifty and the Nifty Bank index by a huge margin so far in 2022. On a year-to-date (YTD) basis, the Nifty PSU Bank index has gained 60 per cent, against the Nifty Bank index's gain of 21 per cent. The Nifty during the same period rose 5.03 per cent.  

Analysts said improved earnings, higher credit growth and reduction of non-performing assets (NPA), have boosted the prospects of the PSU banks.

"PSU banks have a better branch network than private ones and are better placed to take advantage of a credit growth situation. I am bullish on PSU banks for the next two years. The growth is sustainable and valuation is still attractive even after the rally. PSU banks will have an upper hand in mobilising deposits, unlike their private peers,' said A K Prabhakar, head of research, IDBI Capital.

Indices close flat

Benchmark indices Sensex and Nifty50 gained further to settle at record highs for the second day in a row on Friday, helped by intense buying in index majors Reliance Industries, Wipro, and Maruti. In a choppy and range-bound trade, the 30-share BSE Sensex rose by 20.96 points to settle at 62,293.64 points, its fresh record closing high. During the day, it jumped to 62,447.73 points — its lifetime intraday peak. PTI