PSU Bank Stocks Rise Up To 5% As Nifty PSU Bank Index Gains Nearly 4%

Public sector bank stocks advanced on March 20, with the Nifty PSU Bank index rising as much as 3.8% to an intraday high of 8,731.15, following a broader recovery in equity markets after the previous session’s decline.

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Broad-Based Gains Across PSU Banks

All constituents of the Nifty PSU Bank index traded in positive territory during the session. Canara Bank topped the list with a gain of almost 5%, whereas stocks like Union Bank of India, Bank of Maharashtra, and Indian Bank appreciated by more than 4% each.

Other major banks like Bank of India, Punjab National Bank, Bank of Baroda, State Bank of India, Indian Overseas Bank, and UCO Bank appreciated in a range of 3 to 4%. Punjab & Sind Bank and Central Bank of India were also trading in a positive zone of more than 2%

Benchmark Indices Recover

The rise in stocks of PSU banks coincided with a rise in benchmark indices. Sensex and Nifty 50 were trading in a positive zone on March 20 after a decline in the previous session.
Global Cues Support Sentiment

Market sentiment improved in line with gains in Asian markets and easing global concerns. Crude oil prices declined to around $107 per barrel from about $119 in the previous session, according to Reuters, providing some relief to global markets.

At the same time, the U.S. Dollar weakened, which helped boost investor sentiment in emerging markets.

Geopolitical Developments

Geopolitical news releases also contributed to the rally in equities. News releases suggesting that the conflict in West Asia is unlikely to escalate further helped alleviate concerns of disruption in global oil supplies, as reported by Reuters.

Previous Session Impact

The rally in PSU Bank stocks can be seen as a rebound from the previous session’s correction, wherein the Nifty PSU Bank index fell by 3%. Friday’s recovery reflects a reversal of part of those losses during intraday trade.

The movement in PSU bank stocks aligns with the broader market rebound, with gains recorded across all major public sector lenders during the session.