Stocks of Public Sector Banks to Rock on Stock Market
The benchmark indices like Sensex and Nifty 50 were trading on a slight cautious note on Thursday’s trading session, but interestingly it was a treat to watch the performance in 12 public sector banks (PSB) where investors made heavy buying. PSBs like PNB, Syndicate Bank, Bank of India, Bank of Maharashtra, Union Bank of India, Central Bank of India, Andhra Bank, Allahabad Bank, UCO Bank, Indian Overseas Bank, United Bank of India and Corporation Bank rose in the range of over 5% to nearly 19% on Dalal Street, making many investors rich.
The reason behind investors upbeat in these stocks is due to their capital infusion plan announced by the government. If you own any of these stocks, then a good day has arrived on your investment. Let’s find out, why these 6 PSBs have outperformed indexes.
It was Corporation Bank who gained the most, as it surged by nearly 19% after clocking an intraday high of Rs 30.30 per piece. At around 1251 hours, the stock is trading at Rs 29.20 per piece up by 14.51% on BSE. Infusion in this bank is the highest set at Rs 9,086 Crore.
Going further, United Bank of India gained by nearly 15%, as it clocked an intraday high of Rs 11.50 per piece on BSE in early hours. Currently, the stock price is trading at Rs 10.75 per piece up by 7.39%. The government will infuse Rs 2,839 crore in the bank.
Similar trend was continued in UCO Bank, as it rose by nearly 14% on intraday high of Rs 19.5 per piece. At present, the bank is trading at Rs 18.55 per piece up by 8.16% on BSE. Here, capital infusion of Rs 3,330 crore will be made by government.
Going forward, shares of Indian Overseas Bank, Allahabad Bank, Central Bank, Bank of Maharashtra and Andhra Bank jumped between 9% to 11% on BSE. The government will allocate capital worth Rs 3,806 crore, Rs 6,896 crore, Rs 2,560 crore, Rs 205 crore and Rs 3,256 crore.