INSUBCONTINENT EXCLUSIVE:
The Nifty Bank index, which had been stuck in a narrow trading range for the past 10 weeks, has finally seen a price breakout to hit an
all-time high, suggesting that the benchmark is set to climb
Heavyweights HDFC Bank, Kotak Bank, ICICI Bank, and Axis Bank may be at the vanguard of the northward journey for the key gauge.
The index,
which gained 2.9 per cent so far this year through Monday, climbed 1.7 per cent to close at 27,966.65
been buying across stocks and almost all the private sector banks are in an uptrend, helping the index outperform the Nifty
IndusInd Bank gained 3.7 per cent to Rs 1,571 on Tuesday while ICICI Bank rose 3.3 per cent to Rs 388.20
HDFC Bank surged 1.9 per cent to Rs 2,171
Banks are currently witnessing loan demand from higher capital expenditure and working capital
Further, yields in the bond markets have risen, making bank credit more attractive.
Going forward, the banking sector appears to be on a
AVP-research, Sharekhan by BNP Paribas.
