Thu. Sep 28th, 2023
    Indian Overseas Bank (IOB) Shares Surge to 52-Week High Amidst Strong Rally in Public Sector Banks

    Indian Overseas Bank (IOB) witnessed a significant surge in its shares on Monday, reaching a 52-week high of Rs 45.15. This surge comes as part of a broader rally in public sector banks, with the Nifty PSU Bank emerging as the top-performing index during an otherwise lackluster session.

    Following IOB, UCO Bank also experienced a notable increase in its shares, rising by nearly 7% to reach its own 52-week high of Rs 43.20. Several other public sector banks, including Punjab & Sind Bank, Bank of India, Bank of Maharashtra, Punjab National Bank, Central Bank of India, Union Bank of India, Bank of Baroda, and Canara Bank, also saw their shares reach their respective 52-week highs.

    In contrast, private sector banks faced selling pressure, leading to a decline in the Nifty Private Bank index and the overall performance of financial stocks. The Nifty Bank, however, remained relatively stable, while the Nifty Financial Services showed a slight decline.

    Market expert Sandip Sabharwal cautioned against excessive allocation to PSU banks at current valuations, citing concerns over potential upticks in non-performing assets (NPAs) and margin squeezes in the future.

    On the larger market front, the S&P BSE Sensex and Nifty50 experienced downward movements due to pessimistic global sentiments. The Sensex traded at 67,748.11, down by 90.52 points or 0.13%, while the Nifty stood at 20,181.80, a decrease of 10.55 points or 0.05%.

    It is important to note that the views and opinions expressed by experts are their own and do not necessarily reflect those of Economic Times.

    Source: Economic Times