PSU banks in demand; CNX PSU index up over 2%
Allahabad Bank, Oriental Bank, Canara Bank, IOB and Andhra Bank are up more than 3% each on NSE.
 "PSU banks in demand; CNX PSU index up over 2%")
Shares of public sector undertaking (PSU) banks are in demand and trading higher by up to 4% on the National Stock Exchange (NSE), outperforming the benchmark indices that have gained less than 1%.
Among individual stocks, Allahabad Bank, Oriental Bank of Commerce, Canara Bank, Indian Overseas Bank and Andhra Bank are up more than 3% each. State Bank of India (SBI), Union Bank of India, Bank of India, Syndicate Bank, Punjab National Bank and Bank of Baroda, on the other hand, are up 2-3% on NSE.
At 1407 hours, CNX PSU Bank index was up 2.52% at 4,240 as compared to 0.27% rise in the benchmark CNX Nifty. The banking index hit a high of 4,250 during intra-day trade so far.
The market experts believe the softening in bond yields may lead to treasury gains on bond portfolios. On Tuesday, the benchmark 10-year bond yield ended down 2 basis points at 7.90%, after touching 7.89% in intra-day trade, its lowest level since 15 July 2013, a Reuters report suggests.
Meanwhile, rating agency CRISIL in report dated December 2, 2014 said that net interest margin of banks are expected to improve slightly in 2014-15 due to gradual recovery in the economy, control over cost of funds and better asset mix leading to higher yield on advances.
Among individual stocks, Allahabad Bank, Oriental Bank of Commerce, Canara Bank, Indian Overseas Bank and Andhra Bank are up more than 3% each. State Bank of India (SBI), Union Bank of India, Bank of India, Syndicate Bank, Punjab National Bank and Bank of Baroda, on the other hand, are up 2-3% on NSE.
At 1407 hours, CNX PSU Bank index was up 2.52% at 4,240 as compared to 0.27% rise in the benchmark CNX Nifty. The banking index hit a high of 4,250 during intra-day trade so far.
The market experts believe the softening in bond yields may lead to treasury gains on bond portfolios. On Tuesday, the benchmark 10-year bond yield ended down 2 basis points at 7.90%, after touching 7.89% in intra-day trade, its lowest level since 15 July 2013, a Reuters report suggests.
Meanwhile, rating agency CRISIL in report dated December 2, 2014 said that net interest margin of banks are expected to improve slightly in 2014-15 due to gradual recovery in the economy, control over cost of funds and better asset mix leading to higher yield on advances.