Diwali Muhurta Trading 2022: Seven banking stocks hit 52-week highs in Friday’s session last week. These seven banking sticks include Axis Bank, Federal Bank, Bank of Baroda, IDFC First Bank, Indian Bank, South Indian Bank and Karnataka Bank. In fact, out of these 7 banking stocks, the shares of Axis Bank and Federal Bank climbed to their record highs.
Asked about the reasons for the rally in Axis Bank and Federal Bank, stock market experts said Axis Bank and Federal Bank have reported strong Q2 results and are expected to remain in an ‘uptrend’ . However, he added that medium-sized banks are expected to remain strong in the short to medium term as the market is expecting strong quarterly numbers for most banks due to reduction in provisioning and improvement in margins after interest rate hike.
Speaking on the reason for the rally in banking stocks, Ravi Singhal, CEO, GCL Securities said, “During the Covid-19 pandemic, most Indian banks had to maintain provisions, putting additional pressure on the quarterly numbers of banks in the last two years. year. However, that provision is now decreasing and hence banks are getting more money for business. Also, due to the rising interest rate regime, banks are expected to get more funds for business as their The money is expected to be invested by the banks for higher returns. Hence, these developments are expected to give positive results in the net interest income (NII) and net interest margin (NIM) of the banks. Hence, the market is highly bullish on banking stocks and That’s why 7 banking stocks fell to 52-week high in single session on Friday.”
On other positive factors that may continue to fuel banking stocks, Avinash Gorakshakar, Head of Research, Profitmart Securities said, “The Government of India (GoI) has announced a special focus on the infrastructure sector. Hence, engineering , realty and infrastructure companies are expected to mobilize business loan demand helping banking stocks rally. Hence, the rally in banking stocks may continue for the short to medium term.”
Diwali Muhurta Trading 2022: There will be buying in banking stocks
On banking and financial stocks that anyone can see in the meantime Diwali Muhurta Trading On Monday, Rahul Sharma, Director, Head – Technical & Derivatives Research, JM Financial Services listed shares of Axis Bank, Bajaj Finance and HDFC Bank.
When asked about Diwali stock picks for 2022 Muhurta trading session, Anuj Gupta, Vice President – Research at IIFL Securities recommended shares of Federal Bank, IDFC First Bank and SBI to investors who are looking for Diwali Muhurta trading on Monday. I want to buy banking stock. He said IDFC First Bank share price may rise 100 while Federal Bank share price is expected to go up 230 each level till Diwali next year.
Yes Securities on Monday made a buy recommendation on SBI shares during the Muhurta Trading 2022 session.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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