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    PSU Sees Strong Buying

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    Dynamic Levels
    Public sector bank (PSU) stocks recovered up to 27% from their intraday lows as strong buying was seen amidst a market correction. State Bank of India associates State Bank of Travancore and State Bank of Mysore saw over 27% gains, while Indian Overseas Bank, RBL Bank, and Bank of Maharashtra recovered over 10-21%. Analysts believe that PSU banks will play a key role in demonetization by facilitating cash deposits and withdrawals, leading to higher current and savings account deposits in the short term. Interest rates are also expected to continue declining as money supply increases in the formal economy.

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    PSU Sees Strong Buying

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    Dynamic Levels
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    Public sector bank (PSU) stocks recovered up to 27% from their intraday lows as strong buying was seen amidst a market correction. State Bank of India associates State Bank of Travancore and State Bank of Mysore saw over 27% gains, while Indian Overseas Bank, RBL Bank, and Bank of Maharashtra recovered over 10-21%. Analysts believe that PSU banks will play a key role in demonetization by facilitating cash deposits and withdrawals, leading to higher current and savings account deposits in the short term. Interest rates are also expected to continue declining as money supply increases in the formal economy.

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    Public sector bank (PSU) stocks recovered up to 27% from their intraday lows as strong buying was seen amidst a market correction. State Bank of India associates State Bank of Travancore and State Bank of Mysore saw over 27% gains, while Indian Overseas Bank, RBL Bank, and Bank of Maharashtra recovered over 10-21%. Analysts believe that PSU banks will play a key role in demonetization by facilitating cash deposits and withdrawals, leading to higher current and savings account deposits in the short term. Interest rates are also expected to continue declining as money supply increases in the formal economy.

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    18 views3 pages

    PSU Sees Strong Buying

    Uploaded by

    Dynamic Levels
    Public sector bank (PSU) stocks recovered up to 27% from their intraday lows as strong buying was seen amidst a market correction. State Bank of India associates State Bank of Travancore and State Bank of Mysore saw over 27% gains, while Indian Overseas Bank, RBL Bank, and Bank of Maharashtra recovered over 10-21%. Analysts believe that PSU banks will play a key role in demonetization by facilitating cash deposits and withdrawals, leading to higher current and savings account deposits in the short term. Interest rates are also expected to continue declining as money supply increases in the formal economy.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 3

    PSU sees Strong Buying Amidst Correction

    Shares of PSU banks have recovered by up to 24 per cent from


    their intra-days low on the bourses after the trade at this
    eventful day came to an end and have witnessed strong buying
    among the correction.
    State Bank of Indias (SBI) two associate banks of State Bank of
    Travancore and State Bank of Mysore share price have
    recovered more than 27 per cent each from their respective early
    morning lows. Indian Overseas Bank, RBL Bank and Bank of
    Maharashtra share price have bounced back between more than 10 per cent from their intraday lows.
    PSU Stocks
    State Bank of Travancore
    State bank of Mysore
    IOB
    RBL Bank
    Bank of Maharashtra

    % recovered from
    low
    27%
    27%
    10%
    15%
    21%

    At 02:15 pm, Nifty PSU Bank was up by 2.37 per cent against 1.2 percent decline in the
    Nifty50 Index. PSU Bank Nifty recovered approximately 23 per cent from its intraday low
    today.
    Public Sector Banks have taken the news of Demonetization is a positive light. Last night,
    Prime Minister Narendra Modi made an announcement about withdrawing the currency notes
    of Rs. 500 and Rs. 1000 from the market as they no longer will remain Legal tender.
    However, from 11th November 2016, new currency notes of Rs. 500 and Rs. 2000 will be
    floated in the market. Public Sector Banks will be playing a key role in the entire process.

    Nifty PSU Bank had slipped 7 per cent, as compared 6 per cent decline in Nifty50 index in
    intra-day trade on NSE after the Union government's surprise move to withdraw currency
    notes, effective from Tuesday, 8 November 2016, midnight, in an attempt to crack down on
    black money.
    Meanwhile, global financial markets sold off as the results of the US election were being
    called, with Asian stocks and US futures plummeting after Donald Trump was elected as the
    US President.
    According to analysts, current account saving account (CASA) accretion will shoot up in
    banks, especially public sector undertaking (PSU) banks. This is owing to the scuttle to
    deposit cash in the banned denominations (500/1,000 Rupees).
    However, this can be short lived because a large part is likely to be utilized by depositors to
    pay for business/personal requirements. Hence, a relatively smaller part may be parked into
    higher yielding deposits while some may be simply withdrawn in the form of cash.

    Interest rates will continue their slow toll downwards as money supply in the formal
    economy increases. This will continue to assist wholesale borrowers like non-banking
    financial companies (NBFCs) and housing finance companies (HFCs).

    Disclaimer
    The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the
    research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making
    investment decision.
    Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

    Disclosure
    Dynamic Equities Pvt. Ltd. is a member of NSE, BSE, MCX SX and a DP with NSDL & CDSL. It is also engaged in Investment Advisory
    Services and Portfolio Management Services. Dynamic Commodities Pvt. Ltd., associate company, is a member of MCX & NCDEX. We
    declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are
    registered. SEBI, Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advise
    letters or levied minor penalty on for certain operational deviations.
    Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst: DYNAMIC/its Associates/ Research
    Analyst/ his Relative:

    Do not have any financial interest / any actual/beneficial ownership in the subject company.
    Do not have any other material conflict of interest at the time of publication of the research report
    Have not received any compensation from the subject company in the past twelve months
    Have not managed or co-managed public offering of securities for the subject company.
    Have not received any compensation for brokerage services or any products / services or any compensation or other benefits
    from the subject company, nor engaged in market making activity for the subject company
    Have not served as an officer, director or employee of the subject company

    Article Written by
    Tanaya Nath

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