Banking stocks skyrocketed on June 3, with Bank of Baroda, SBI, PNB, Axis Bank, ICICI Bank, and Kotak Bank rising up to 12%. The Bank Nifty index also crossed 50,000 for the first time, driven by optimism over a likely BJP-led NDA victory in the 2024 elections.
Key Highlights:
- Record Highs: Banks like BoB, SBI, Axis Bank, ICICI Bank, Indian Bank, and Canara Bank hit fresh 52-week highs.
- Stock Performance: These stocks have surged between 10-46% this year, compared to a 5% rise in the Bank Nifty index.
Analyst Insights:
- Morgan Stanley: Remains bullish on financials like SBI, BoB, ICICI Bank, LIC Housing Finance, Shriram Finance, HDFC AMC, ICICI Prudential, and ICICI Lombard.
- Jefferies: Positive on private banks such as HDFC Bank, IndusInd Bank, and Kotak Mahindra Bank due to attractive valuations.
Economic Outlook:
- S&P Global Ratings: Upgraded its outlook for six Indian banks, including SBI and HDFC Bank, to ‘positive’ from ‘stable’ due to strong economic growth.
- Technical Analysis: Bank Nifty could reach 51,000-52,000 levels but may find support at 47,000 and 46,200 if it drops below 48,000.
Election Impact:
Exit polls suggest the NDA could win 370 seats, with BJP alone securing over 325 seats, up from 303 in 2019. BJP’s vote share may rise to 40%, and NDA’s to 47%, compared to 37.3% and 45% in 2019, respectively.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
