The year 2024 was full of ups and downs for the Indian stock market. While the market made a high of 26277, rapid selling by FIIs was also seen.
The shares which gave the most benefits to investors throughout this year were the shares of public sector banks. The Nifty PSU Bank index has gained 24.08% this year (till December 11) on the National Stock Exchange (NSE). Whereas Nifty50 index gave a return of 13.39%. On the other hand, Nifty Private Bank Index has given a return of only 3.94% so far. Now the question arises that how can the behavior of public sector banks be in the year 2025?
According to analysts, there is a positive environment for public sector banks also. The reason behind this is the strength of public sector banks, attracting investors towards public sector banks, continuous improvement in financial performance, less interference of union bodies, better control in loan distribution, better than expected margins and asset quality, better than private banks. Risk-benefit ratio.
Will the boom of public sector banks continue in the year 2025?
Deepak Jasani, Head of Retail Research, HDFC Securities, says, “This rally of public sector banks may continue for a few months in the beginning of 2025. After this it will become a stock-pickers game and investors will have to take decisions based on the earnings of the banks. Analysts believe that this rally of better performance of public sector banks (PSBs) may continue for a few more months, but after that it may take a break.
stock performance
Public sector bank stocks have performed well so far in 2024 (till December 11):
Indian Bank: 38.5% gain
State Bank of India (SBI): 34.2% बढ़त
Indian Overseas Bank: 33.14% gain
Bank of Maharashtra: 24.96% increase
Canara Bank: 24.29% gain
Punjab & Sind Bank: 24.17% increase
It is noteworthy that none of the banks included in the Nifty PSU Bank Index gave negative returns.
Which banks will give better returns?
Gaurav Dua of Mirae Asset Sharekhan believes that there will be no all-round rally in the shares of public sector banks in 2025. He said that investors have to be careful while choosing stocks. In this sector we find SBI, Bank of Baroda and Bank of India in better position.
Disclaimer: This information is for informational purposes only and should not be construed as investment advice. It is recommended to consult a financial advisor before making investment decisions.