Banking stocks gained momentum on October 10. There was a spectacular rise in the shares of both government and private banks. Nifty Bank closed 0.74 percent higher. The reason for this is believed to be the recent reforms in the banking sector. The Appointments Committee of the Cabinet has approved the revised guidelines related to the selection of whole-time directors for public sector banks.
1.6 percent jump in Nifty PSU Bank index
Upon implementation of these guidelines, State Bank of India (SBI) will have three managing directors from the public sector, while one can be appointed from the private sector. Nifty PSU Bank Index It closed with a rise of 1.6 percent. There was a rise in all the shares of this index. This index has closed in the green in 5 out of the last six sessions.
Highest jump in UCO Bank shares
UCO Bank was the biggest gainer in the PSU Bank index. It closed at Rs 31.80, up 3.41 per cent. This stock has risen 9.47 percent in the last one month. Indian Overseas Bank stood at second position. The share closed at Rs 40.25 with a jump of 2.84 per cent. This stock has risen only 1.69 percent in the last one month.
Strength in SBI and PNB also
Shares of the country’s largest bank SBI also rose well. It closed at Rs 881.25, up 2.2 per cent. Out of the last 5 trading sessions, this stock has closed in the green in three. This stock has risen 7.71 percent in the last one month. PNB shares also closed at Rs 116.92, up 2.29 per cent. This stock has risen 10 percent in the last one month.
Bank Nifty’s performance improved in the last one year
In the last one year, the performance of Bank Nifty has been better than Sensex and Nifty. During this period it has increased by more than 10 percent, while Nifty 50 has increased by only 1.2 percent. Analysts believe that the shine of banking stocks is increasing after the consolidation phase. Shares of public sector banks have a big role in this rise. However, private bank shares have also seen a rise.
Shares of private banks also rose
On October 10, shares of IndusInd Bank closed at Rs 763.35, up 1.90 per cent. IDFC First Bank shares gained 1.33 percent. Axis Bank shares closed at Rs 1,180 with a gain of 1.11 per cent. Shares of HDFC Bank, Kotak Mahindra Bank and ICICI Bank also managed to close in the green.