D-Street Buzz: Nifty PSU Bank outperforms as SBI hits new high; Bank of Baroda, Union Bank jump 5-7% each

India’s stock market traded far in red on February 7 on weak global cues amid increasing concerns about economic growth but the banking index slapped the trend, which was powered by the Bank of Heavy Class India At 11:5 a.m., Sensex fell 670.65 points, or 1.14 percent, at 57,974.17, and Nifty Shed 199.80 points, or 1.14 percent, at 17,316.50.

However, the PSU Nifty Bank index rose more than 3 percent led by an increase in the state of the state of India (SBI) which rose more than 3 percent, achieving a new height after the lender declared the third quarter income On February 5, SBI reported a net profit increase of 62 percent year to year to 8.431.9 Crore for the quarter ended in December, which was above the expectations of Rs analyst at 7,957.4 Crore.

The sharp increase at the bottom line fell to a decrease in a setback of 32.6 percent in the provisions to Rs 6,974 Crore. The quality of assets continues to increase due to the gross non-performing asset ratio (NPA) comes at 4.5 percent for the quarter of 4.9 percent in the previous three months Credit Suisse has maintained a “overweight” call on stock and raises the target price to RS 640. Growth pickup will help a stable row. CET1, including nine months profit will reach 10.32 percent. It lifts EPS FY22 / 23/22 each 2/3/3 percent.

JP Morgan has also maintained a “overweight” rank with a target at Rs 650. Normalization activities are likely to see additional stress development and credit costs to remain contained Growth has increased, while the capital and liquidity both remain strong, he said, adding it expects banks to return to ROE normalized 15 percent at FY23. Interesting assessment at the current level, said JPMorgan Stock traded at Rs 544.25, up RS 14.05, or 2.65 percent. It touches the highest 52 weeks from Rs 549.05. It has touched the highest intraday RS 549.05 and Low Intraday Rs 525.65.