After breakout of Nifty Bank, market leadership may shift from IT to banks

“In 2021, till date, Nifty is outperforming IT Nifty, while Bank Nifty is underperforming. Market leadership shift away from IT is likely, perhaps for banks. ‘Bad Bank’ Road Announcement Geojit VK Vijayakumar, Chief Investment Strategist, Financial Services, said the map and government guarantees for security receipts to be issued by NARCL will improve the prospects of banks.

government will guarantee ₹In a fresh attempt to clear one of the world’s biggest bad loans, Finance Minister Nirmala Sitharaman on Thursday said security receipts worth Rs 30,600 crore were issued by her new bad bank. The guarantee will be for a period of five years.

officers identified ₹2 lakh crore non-performing assets, some ₹He said that in the first phase, 90,000 crores will be kept in bad banks.

“The idea of ​​a bad bank has been a topic of discussion and debate in India for many years. But now the idea has turned with Finance Minister Nirmala Sitharaman preparing the road map for the National Asset Reconstruction Company. Government guarantee will be given for the issuance of NARC handling bad loans of banks ₹Security receipts of 30600 crores. Banks will get 15% in cash and 85% in the form of security receipt. Since banks will clear these NPAs from their balance sheets, they can focus on lending activities that can help trigger a fresh round of credit offs, which the economy badly needs, Vijaykumar of Geojit Financial Services said.

Equity99 co-founder Rahul Sharma says that Bank Nifty broke the level of 38000 and gave a gap-up opening. “We expect some buying today in the banking sector, especially in PSU banks.

Vishal Wagh, Head of Research, Bonanza Portfolio, expects 40,000 levels on Bank Nifty in the coming week. Bank Nifty may or may not outperform other broad indices like Nifty or Nifty Midcap or Nifty 500. But it will be at least on par with other regional or major indices. It has already crossed its all-time high and is now set to target 39200-40000 in the coming few weeks.”

VK Vijayakumar says that in the overall market, even FIIs, who were skeptical about valuations and sold heavily in July, are making a strong comeback and chasing the bulls.

“FII has invested” ₹5344 crores in the cash market during the last three days. Nifty has now climbed about 10000 points from the low level of March 2020. Even the fanatical bulls would not have imagined such a brutal rally. Now bulls are unlikely to give up their hold on the market till it reaches 60000 on Nifty at 18000/Sensex,” he said.