Hefty expense ratio implies reduced returns over the long term

Expense Ratio

ETF has not been able to closely match its benchmark returns

Tracking Error

ETF has not been able to generate better price return than bank FD

Return vs FD Rates

Good time to consider, as ETF is not in overbought zone

Entry Point

Indian banks are unlikely to raise deposit rates further due to slowing credit growth and a recent cash reserve ratio cut. The influx of liquidity ensures sufficient funds for lending, stabilizing deposit rates near their peak. Any rate reduction hinges on the central bank lowering the benchmark repo rate, potentially triggered by easing inflation.

Banks unlikely to offer higher deposit rates after CRR cut

Investors can buy HDFC Bank shares at ₹1,856, with potential to rise to ₹2,400 in 12-18 months.

Technical Call: HDFC Bank - BUY

Both Nifty 50 and Bank Nifty broke key resistance levels last week, posting gains of over 2%, with strong buying interest seen in derivatives. Nifty futures show bullish momentum, with potential to reach 25,250 if it breaks 24,800, while Bank Nifty has cleared 53,000, targeting 55,000 next. Traders are advised to hold long positions, with updated stop-loss and target levels for both indices.

F&O Tracker: Bulls Triumph Over Bears

Indian benchmark indices showed strong growth last week, with the Nifty 50, Sensex, and Nifty Bank all rising over 2%, signaling a bullish trend. Foreign Portfolio Investors (FPIs) continued their buying spree, contributing $2.88 billion in purchases, further boosting market sentiment. The Nifty and Sensex are expected to target higher levels, with the Nifty potentially reaching 25,000–25,500 and the Sensex eyeing 83,500–84,500, while a fall below key support levels would turn the outlook negative.

Index Outlook: Sensex, Nifty 50 Gear Up For Fresh Rally

Indian benchmark indices show strong rise, NiftyBank bullish breakout, Nifty50 reversal pattern, positive chart outlook for upcoming rally.

Nifty and Bank Nifty Prediction for the week 09 Dec’24 to 13 Dec’24 by BL GURU

The Reserve Bank of India (RBI) has announced a reduction in the Cash Reserve Ratio (CRR) by 50 basis points, implemented in two phases of 25 basis points each on December 14 and December 28. The CRR is now at 4% from 4.5% earlier. Here are the 7 ways how RBI’s CRR cut could impact Indian banks.

RBI Slashes CRR by 50bps: 7 Key Benefits for Banks

Foreign institutional investors are returning to the Indian stock market after a period of selling. They’ve invested heavily in financials, particularly HDFC Bank, boosting its market cap. While some analysts are optimistic about this revival, others remain cautious due to high valuations and slowing growth.

FIIs fixing billion-dollar blunder, bank stocks on top of buying list

Stock ideas: MOFSL prefers five bank stocks namely ICICI Bank Ltd, HDFC Bank Ltd, State Bank of India (SBI), Federal Bank and AU Small Finance Bank Ltd.

RBI monetary policy: 5 bank stocks to buy amid potential turn in interest rate cycle

RBI Monetary Policy: The recovery in domestic indices was majorly supported by banking counters. Top gainers in the 30-share BSE Sensex pack were ICICI Bank Ltd, Axis Bank and State Bank of India (SBI). Sub-index-wise, Nifty PSU Bank, Nifty Private Bank and Nifty Bank gained up to 1.15 per cent.

RBI policy: Two reasons why banking stocks are rising today

Canara Bank intends to cut stakes in Canara Robeco Asset Management Company Ltd by 13 per cent and Canara HSBC Life Insurance Company Ltd by 14.5 per cent.

Canara Bank shares, IPOs: RBI okays PSU’s divestments in AMC, Life insurance arms; stock in focus

The stock quoted a 52-week high price of Rs 263.15 and low of Rs 163.00.

Bandhan Bank shares 0.47% as Nifty falls

Edelweiss ETF-Nifty Banking objective is to provide returns before expenses that closely correspond to the total returns of the Nifty Bank Index subject to tracking errors