Less expense ratio implies better returns over the long term

Expense Ratio

ETF has not been able to closely match its benchmark returns

Tracking Error

ETF has been generating better price return than bank FD

Return vs FD Rates

Entry Point

Market expert Rahul Sharma sees Nifty reaching 24,800, fueled by strong banking and financial stocks. Private banks like ICICI and HDFC offer momentum plays. PSU banks provide better long-term value. Sharma recommends a basket of L&T, NTPC, Bharat Electronics, UltraTech Cement, and Siemens, anticipating a capex revival. CDSL and BSE offer profit-booking opportunities, while Angel One shows further upside potential.

Banks & financials likely to generate alpha & lead market in next 8-10 sessions: Rahul Sharma

Market expert Ajay Bagga recommends short-term investments in public sector banks, railways, and defense stocks in the 60 days leading up to the Indian Budget. He anticipates a pre-budget rally in these sectors, followed by a potential tapering off. While acknowledging the growth of OTT platforms, Bagga finds the movie exhibition space too small and dependent on blockbuster hits.

There’s 60-day window to get into the public sector, railways, and defence stocks before budget: Ajay Bagga

Market expert Dipan Mehta suggests a cautious approach in the current market. He recommends selective investments. Mehta advises underweighting the banking sector. However, he sees potential in PSU banks for trading opportunities. He also highlights platform companies and unique business models as areas of interest. Mehta emphasizes the importance of the right valuation levels for investments.

Sell-on-rally or new phase of bull market? Here’s what Dipan Mehta has to say

The Nifty Realty Index and Bank Nifty surged 2.1% and 1.1%, respectively; while the benchmark Nifty ended marginally higher on Wednesday. The Nifty PSU Bank index gained 2.3% and the Nifty Private Bank index inched 0.86% higher. Canara Bank, Federal Bank and Bank of Baroda rose 2-4%.

Traders stock up banks, realty on CRR cut hopes

Data from domestic rating agency India Ratings show public sector banks issued ?37,700 crore of CDs in the first 20 days of November compared with Rs 42,800 crore during October 1-31. CD issuances by private banks in this period, meanwhile, rose to Rs 19,100 crore from Rs 16,900 crore in October.

Banks stick to certificates of deposits to keep lending

The finance ministry convened a meeting with public sector banks, government agencies, and investigative bodies like the CBI to expedite bank fraud investigations. Amendments to the Prevention of Corruption Act protect bankers’ honest decisions, fostering better cooperation. These measures, along with the IBC and NARCL, aim to improve asset quality and resolve stressed banking assets.

Ministry of Finance meets PSBs, investigative agencies on bank frauds

The Department of Financial Services (DFS) and Central Bureau of Investigation (CBI) convened a meeting with Public Sector Banks (PSBs) in New Delhi to enhance cooperation in investigating bank fraud cases. Discussions focused on expediting investigations, leveraging the IBC and NARCL, and utilizing a new asset tracing application developed by PSB Alliance to improve asset recovery and deter future fraud.

Platforms to be created for discussions with CBI to expedite investigation in bank fraud cases; FinMin holds meet with stakeholders

On the NSE, six sectors advanced and as many declined, with the Nifty PSU Bank and Realty rising the most.

Nifty, Sensex Clock Best Winning Streak In Months: Market Wrap

UCO Bank Share Price: Shares of PSU banks, including UCO Bank and Central Bank of India, rose up to 8% on Wednesday as the RBI’s rate-setting panel meeting began. Brokerages anticipate a potential cut in the cash reserve ratio (CRR), with Citi highlighting that a 50 basis point reduction would benefit PSU banks like PNB, SBI, and Bank of Baroda.

UCO Bank, other PSU bank stocks rally up to 8% as investors expect CRR cut from RBI

Finance minister Nirmala Sitharaman emphasizes the importance of a stable banking sector. The Banking Laws (amendment) Bill, 2024 allows up to four nominees per account and improves governance. The bill aims to protect investor interests and enhance customer convenience. The Lok Sabha has passed the bill by voice vote, ensuring the sector’s stability and profitability.

Public sector banks safe, stable & healthy: FM Nirmala Sitharaman

Total bank branches of scheduled commercial banks have increased by 3,792 in a year to reach 16,55,001 in September 2024.

Public Sector Banks Safe, Stable; Earn Rs 85,520 Crore Profit: Sitharaman

ICICI Prudential Nifty PSU Bank ETF aims to provide returns that closely correspond to the total returns of the Nifty PSU Bank Index, subject to tracking errors