Nifty PSU Bank Outlier In Trade On Nov 24, 2021; IOB, Central Bank Gain Up To 18%
Indian benchmark indices in early trade on November 24, 2021 are trading almost flat with a positive bias. Nifty at around 9:28 am trades higher by 0.25 percent or 43 points at 17546, while Sensex gains proportionately by close to 140 points. Broader markets however are outperforming the headline indices with Nifty midcap 100 up over 0.5 percent.
Among the Nifty sectoral indices, Nifty PSU Bank is the clear outlier in trade with gains of over 1 percent. While most sectors trade in the green, metal pack is trading in the red.
Of the 13 Nifty PSU Bank constituents all trade in the green, while most gains are seen in the stock of Indian Overseas Bank (up over 12%), Central Bank (11%) and Maharashtra Bank (up 7%). Meanwhile all other constituents including Bank of India, Punjab and Sind Bank, PNB, SBI among others trade with gains between 0.5 to over 2 percent.
As per reports, in the upcoming Winter session of the Parliament i.e. to commence from November 29, the centre shall unveil the Banking Laws (Amendment) Bill 2021 for privatizing two public sector banks. For the privatization of the two PSBs, amendments need to be implemented in Banking Companies (Acquisition and Transfer of Undertakings) Acts, 1970 and 1980. Furthermore, incidental changes are needed to be made in the Banking Regulation Act, 1949. As per official sources, the bill has been put up for introduction, consideration and its passage during the upcoming Winter session.
Importantly in June this year, Niti Aayog submitted the final names of PSBs to be privatised in the ongoing fiscal year as of the government's divestment spree.