As benchmarks ended flat on Wednesday, Nifty Bank rallied 236 points (0.73%) to close at a record high 32,574.65 points. The Nifty stabilized 1.4 points higher to close at 14,564.85 while the Sensex fell 24.79 points (0.05%) to close at 49,492.32.
Nifty Bank, which closed the previous trading session at its 52-week high, hit a new high on Wednesday and its biggest winners were BoB, SBI, IndusInd Bank, Axis Bank and ICICI Bank, up 6 , 5%, 4.6%, 1.56%, 1.53% and 1.46%, respectively.
The massive sell-off of index heavyweights such as HDFC, RIL, HDFC Bank, Bajaj Finance and Kotak Mahindra Bank caused the benchmarks to drop their gains and break their three-session record. Indeed, investors chose to record profits after a 1.9% contraction in factory output in November.
Market experts believe the banking industry is on the verge of a recovery due to a global economic recovery. In addition, business growth should accelerate, helped by a good festive season for third quarter results. In its report, Motilal Oswal Institutional Equities said: “Overall, we believe that business growth will pick up, helped by a good holiday season, and expect systemic loan growth of 4.5% for FY21. . The private banks under our cover are expected to experience relatively higher growth of almost 9% year on year. The top brokerage picks are ICICI Bank, HDFC Bank, SBI, and AU Small Finance Bank. However, experts have asked investors to remain cautious after the RBI warned of rising NPAs in the banking industry.
REITs bought shares worth $ 250.5 million, while domestic institutional investors sold shares worth $ 316.02 million, according to provisional data on the exchange. So far in January, REITs have bought shares worth $ 1.92 billion.
Deepak Jasani, Head of Retail Research at HDFC Securities, said: “The risks of abrupt and sudden liquidations at high levels remain. You have to be careful and keep long positions under control and continue to take profits on trading and some investment positions. “