Stocks to buy today: After falling over 11 per cent in the last one-and-a-half months, the Nifty banking index has settled at an attractive PE multiple of 17.64, which has caught the attention of Dalal Street observers. According to stock market experts, after the rally in Tuesday’s session, Bank Nifty has got strong support at the level of 33,000 and it can go up to the level of 35,500 in the short term. Banking stocks such as State Bank of India (SBI), Kotak Mahindra Bank, Federal Bank, ICICI Bank and HDFC Bank are expected to pull the Nifty Bank index further north in the short to medium term.
Elaborating on the importance of nifty bank index In a lucrative PE, Ravi Singhal, Vice Chairman, GCL Securities said, “If we leave the year 2020 as an exception, Nifty Bank PE is at a five-year low, indicating an upside potential in banking indices and some. Suffice it to understand. Bank Nifty listed stocks. Those who believe in positional investments for medium to long term investments can look at quality banking stocks like SBI and Kotak Mahindra Bank shares. FCL Ravi Singhal of Securities said that stocks whose PE multiple is close to the Bank Nifty index may give a sharp bounce to the lower levels of the market in the coming sessions.
Santosh Meena, Head of Research, Swastika Investmart Ltd. said, “Bank Nifty is trading at a P/E ratio of 17.64 and P/B value of 2.50 as of May 16, 2022, lower than its 5-year average. Indian Fundamentals The economy is poised to outperform its global peers in terms of economic growth over the medium to long-term horizon due to the government’s focus on infrastructure, rising housing and real estate demand, and recovery in private CAPEX. One of the best ways is through subject banks. The banking sector grows as the economy grows and credit demand rises. Indian banks are sufficiently capitalized, and they have provided for credit costs; That legacy NPA issue is now subsiding.”
Santosh Meena further added that the demand for credit for both corporate and retail sectors is expected to increase in the coming years, “We are extremely positive about the banks as the growth outlook is positive and the valuations are fair. We suggest investors to take the plunge. Take advantage of the current downside to buy in banking stocks like SBI, HDFC Bank, ICICI Bank and Federal Bank.”
Pointing to the key levels with respect to the Nifty Bank index, Sumeet Bagdia, Executive Director, Choice Broking said, “After the pull back rally on Tuesday, strong support for the Bank Nifty index has been placed at 33,000-mark and above the current levels. Any downside should be viewed as a buying opportunity for the short-term target of the 35,000 to 35,500 level.” When asked about banking stocks that one can consider buying for the medium to long term, Sumeet Bagadiya of Choice Broking batted in favor of SBI stocks.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.