Market Rally Concludes as Indian Equities Open Lower
The Indian stock market concluded its impressive six-day rally, commencing trading on a lower note on Tuesday, November 18. This shift in momentum was primarily influenced by weak global cues, prompting a broad market pullback.
PSU Banks: The Lone Bright Spot
Amidst the prevailing weak market sentiment, the Nifty PSU Bank sector stood out as the only gainer, successfully extending its winning streak for a third consecutive session. This remarkable performance defied the overall negative trend, showcasing the sector's resilience.
According to a note from ICICI Securities, while the broader market struggled, the PSU Banks and Auto sectors continued to demonstrate positive momentum. This was a continuation of the previous session's strength, where the benchmark Nifty had closed at 26,012, marking a 0.40% gain, and the Nifty Midcap index had soared to a fresh all-time high of 61,180.
Top Performers and Laggards in the PSU Banking Space
Several PSU banking stocks rebounded from their day's lows to post significant gains. Leading the charge was Bank of Maharashtra, whose shares surged nearly 1.65% to ₹60.90 each on the BSE. It was closely followed by IDBI Bank and Central Bank, which registered gains of over 1.37% and 1.36%, respectively.
The positive sentiment enveloped other public sector lenders as well. Bank of Baroda saw its share price increase by 0.69%, hitting an intraday high of ₹289.65. Similarly, Punjab and Sind Bank and UCO Bank advanced by 0.52% and 0.89%. However, not all stocks in the basket enjoyed gains; Union Bank and Indian Overseas Bank experienced minor declines of 0.2% and 0.1%, making them the top laggards for the session.
Analyst Outlook for PSU Banks
The strong performance of PSU banks is not seen as a fleeting trend. Brokerage firm ICICI Direct pointed out that the PSU Bank Index has been outperforming for ten consecutive weeks, maintaining a consistent higher-high and higher-low formation. This bullish structure is largely attributed to the sector's robust Q2 earnings.
Offering guidance for the near term, the brokerage noted that the index is undergoing a phase of healthy consolidation after a sharp upward move. They advise investors to view any potential dips not as a negative signal, but as a buying opportunity in quality stocks. Strong support is identified near the 7,800 level, which aligns with the 38.2% retracement of the recent rally from 6,730 to 8,391.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
