Bank Nifty Top 40011 Levels; More Gains Likely On Improved Outlook

Though indices have seen some profit booking and have pared record high levels, they have again recouped initial losses with Nifty at 18590 levels. On the Bank Nifty too a new high of 40,011 has been hit.

The gains have been led by both private lenders as well as public sector lender such as HDFC Bank, ICICI Bank, Kotak Mahindra Bank, SBI and IndusInd Bank.

Bank Nifty Top 40011 Levels; More Gains Likely On Improved Outlook

Banking pack which has been underperforming the larger rally is now catching up. Furthermore, with the picking up of the economy amid strengthening of the Covid 19 vaccination drive, there is more of credit offtake. Also, for the banking sector there is suggested that asset quality of the banks will further improve.

Further Moody's -the global rating company has improved the outlook for bank to 'Stable' from the earlier 'Negative'. This will again be providing a fillip to banking stocks.

On Saturday, HDFC Bank results for the Q2 painted a good picture with improvement in net profit on a year on year basis by almost 18 percent.

GoodReturns.in