Nifty PSU Bank Index Performance: Bank of India, UCO Bank among 7 stocks rebound 15–56% from 1-yr lows - here’s why

Résumé détaillé

State-owned bank stocks have rallied sharply, with the Nifty PSU Bank index posting its biggest one-day gain in nearly two years. Strong quarterly profits, improving asset quality and returning foreign investment have supported the recovery.

Shares of state-owned banks such as SBI, Bank of Maharashtra, and Indian Bank have been flying high lately as Dalal Street staged a strong rebound. In the previous session, the Nifty PSU Bank index surged nearly 4%, marking its biggest single-day gain in almost two years.

Union Bank of India, Punjab National Bank, Bank of India, and Bank of Baroda emerged as the top gainers, with all 12 constituents of the index closing higher, posting gains ranging between 0.7% and 5.6%.

To be precise, PSU bank stocks have been in recovery mode since late October, gaining around 12% from their recent lows.

Investors have been encouraged by the sector's strong performance in the September quarter, with banks reporting healthy credit growth, improving asset quality, robust interest income growth, and a reduction in overall non-performing assets.

In addition, the return of overseas investors has also supported the rally, pushing the Nifty PSU Bank index to its highest level since April.

FPIs have pumped ₹53,739 crore into domestic stocks in November so far, according to NSDL data. The shift in sentiment towards Asia's third-largest economy comes amid a correction in global AI-linked stocks.

Concerns over potential moves by the US Congress, now led by Democrats, to impose restrictions on the massive expansion of data centres have also contributed to a rotation away from AI-linked stocks.

The recent rally has helped most PSU bank stocks recover sharply from their respective 52-week lows, with Bank of Maharashtra leading the pack with a 58% rebound.

It was followed by Union Bank of India, Punjab National Bank, Indian Bank, Bank of India, and Bank of Baroda, which have also rebounded between 16% and 34% from their respective one-year lows.

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