With the market now pricing in a December rate cut, analysts say PSU banks may continue to outperform private peers through FY26 and beyond.
The Nifty PSU Bank index has risen 33 percent in six months, outpacing broader markets, as investors cheer strong earnings and hopes of policy action, however, analysts believe the next leg of gains could be more selective
For the index to touch 6100, Reliance Industries, Infosys and TCS will have to perform, says Vineet Bhatnagar opf Phillip Capital. He is bullish on private banks and pharmaceutical shares, and sees a positive build up in Tata Motors and Hero Motocorp.
SP Tulsian, sptulsian.com is positive on Ultratech Cement and ACC.
Microsec has come out with its report on "India Strategy - Dec 2012". The research firm believes that, Nifty is likely to trade 12.7-13.2xFY14 (E) earnings, which makes a range of 5753-5980 for December trading.
Contrary to expectations of pullback of sorts, the Indian equity market started off on a good note and then kept on building on it.
Prashastha Seth of IIFL Private Wealth feels investors should hold PSU banking stocks for more than 6 months time frame.
Rahul Mohindar of Viratechindia.com view on PSU banking stocks.
Buy PSU banking stocks on dip, says Manish Sonthalia, VP Fund Manager, Motilal Oswal AMC.