Nifty Bank has 4.5% Further Upside In The Near Term: CLSA

There is seen positive momentum even after the Budget 2022 delivery which served all of the ground while being futuristic. At the time of writing this copy at around 11:51 am, Nifty traded higher by 177 points at 17753. Nifty Bank at the same time had been outperforming with gains to the tune of 1.8%.

As at around the same time, Nifty Bank was at 39,215 and there are calls that it could hit 41,000 in the near term as iterated by Laurence of CLSA in a leading business publication report. According to him, public sector banks will be the key drivers on the upside. He said, "Nifty Bank index is one of the key leaders and outperforming sector within the market and if we have to break that down even further, it's actually the public sector undertaking (PSU) banks look like the key driver to the upside outperforming the private banks."

Of the 12 constituents of the Nifty Bank, AU Bank has hit fresh 52-week high, while SBI is close to its 52-week high price of Rs. 543.95 per share.

After the previous day's intermittent drag, Nifty Bank is trading firm despite no mention of capital infusion in the PSBs as well as divestment mentioned in the previous year's budget.

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