After indices broke their winning streak in the previous session, indices on weak global cues are trading with losses. Nonetheless, the banking saw which was subdued in trade on September 7 has been gaining with all the major indices within it in the green. Nifty Bank at the time of writing this copy was up by 0.57%. For the Bank Nifty a new high is in sight, while the support is placed at 36,200. Notably, Nifty Bank last traded at 36700, up 232 points.
While the PSU Banking pack on the Nifty index showed gains of over 1%, while the Nifty Private Bank index gained over 0.6%. From the PSU Banking pack, the major gains were seen in stocks like Canara Bank, Bank of Baroda, PNB which were up over 1%, while others such as Indian Bank, SBI, Maharashtra Bank were up between 0.3-0.86%. Some others including IOB, J&K Bank and Central Bank traded with no change, while Bank of India traded with losses.
Within the Private sector banking front, the stocks that made the most gains in trade on September 8, 2021 include Kotak Bank, Federal Bank, Yes Bank and Axis Bank among others, while the RBI Bank was the loser in trade today.
The sentiment in the banking pack might be uplifted by the RBI report which stated that banks investment in shares over the fortnight ended August 13 has increased by a substantial 25% which is rather unprecedented. The situation is being attributed to their aggressive participation in IPOs as well as conversion of debt into equity.