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Banking shares edged higher with the Bank Nifty, the bank index, up nearly 2% after falling 17% in past one-month on the National Stock Exchange (NSE).
Yes Bank, Bank of Baroda and ICICI Bank were up more than 3%, while Bank of India, Axis Bank, Punjab National Bank, State Bank of India, Canara Bank and Kotak Mahindra Bank up 1%-3%.
At 12:15 AM, the Bank Nifty, the largest gainer among the sectoral indices was up 2.3% or 360 points at 16,150 compared to 0.90% rise in the CNX Nifty.
In past one-month, the bank index had underperformed the market by falling 17% against 12% declined in the benchmark index. Most of the banks are currently trading near their 52-week lows.
State Bank of India, Yes Bank, IDBI Bank, ICICI Bank, Bank of India, Union Bank of India, Uco Bank, Oriental Bank of Commerce, Central Bank of India and Axis Bank dropped more than 20% in past one-month.
Among individual stocks, Yes Bank was up 6% at Rs 687 on the NSE today. The stock of private sector lender was down by 24% from the record high of Rs 909, on concerns about asset quality.
Analyst at Bank of America Merrill Lynch reiterates ‘Buy’ rating on the stock with a price objective of Rs 1,150.
“In the noise about the bank’s asset quality, we believe that the ‘build-up’ of its branch banking franchise is clearly being ignored. A large part of this is already visible on liability side. The focused approach toward customer acquisition and building a branch-centric model should ultimately lead to the desired/expected full ‘retail’ model,” analyst said in a report dated September 7, 2015.
Yes Bank, Bank of Baroda and ICICI Bank were up more than 3%, while Bank of India, Axis Bank, Punjab National Bank, State Bank of India, Canara Bank and Kotak Mahindra Bank up 1%-3%.
At 12:15 AM, the Bank Nifty, the largest gainer among the sectoral indices was up 2.3% or 360 points at 16,150 compared to 0.90% rise in the CNX Nifty.
In past one-month, the bank index had underperformed the market by falling 17% against 12% declined in the benchmark index. Most of the banks are currently trading near their 52-week lows.
State Bank of India, Yes Bank, IDBI Bank, ICICI Bank, Bank of India, Union Bank of India, Uco Bank, Oriental Bank of Commerce, Central Bank of India and Axis Bank dropped more than 20% in past one-month.
Among individual stocks, Yes Bank was up 6% at Rs 687 on the NSE today. The stock of private sector lender was down by 24% from the record high of Rs 909, on concerns about asset quality.
Analyst at Bank of America Merrill Lynch reiterates ‘Buy’ rating on the stock with a price objective of Rs 1,150.
“In the noise about the bank’s asset quality, we believe that the ‘build-up’ of its branch banking franchise is clearly being ignored. A large part of this is already visible on liability side. The focused approach toward customer acquisition and building a branch-centric model should ultimately lead to the desired/expected full ‘retail’ model,” analyst said in a report dated September 7, 2015.
