Even as in early morning trade, SGX Nifty signalled weak opening for the Indian indices but headline indices traded with gains and Nifty trades at 18,300, Bank Nifty is up again.
The top contributor to the gains in the Bank Nifty are stocks like SBI, ICICI Bank, Kotak Mahindra, PNB and HDFC Bank.
In the run up, State Bank of India shares have hit a record high of Rs. 522.55 per share on the NSE. While on the BSE, 52-week high hit has been Rs. 522.40 per share.
On the continuing gains, the stock of SBI' s market cap has breached levels of Rs. 4.5 lakh crore and stands at Rs. 4.64 lakh crore.
Analysts given the robust outlook for the sector in terms of credit disbursal, improvement in NPA situation as well as the overall recovery landscape are bullish on the stock and have still given the stock as a buy for short term.
Being the strongest bank in the PSU space, there are positive bets on the stock. Also the stock boast of better fundamentals compared to most of the private banks. It is trading at 1.5 P/B, which is very attractive as compared to big private banks like HDFC and Kotak Mahindra Bank.