Current price is close to the real time NAV

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

Not a good time to invest, ETF is in overbought zone

Entry Point

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

Banking stocks were in focus on Friday after RBI slashed the cash reserve ratio (CRR) by 50bps or 4 per cent. The Central Bank has kept the repo rate unchanged at 6.5 per cent and maintained its neutral stance.

RBI Policy: PSU Bank stocks gain as RBI cuts CRR by 4%

This model enables detection of mule bank accounts in an efficient manner and a pilot with two large public sector banks has yielded encouraging results.

RBI Arm Pilots AI Based Solution To Detect Mule Accounts

RBI Governor Shaktikanta Das on Friday reduced the cash reserve ratio (CRR) to 4% in two phases, aiming to address liquidity deficits caused by rupee depreciation and capital outflows. While there was no rate cut, the CRR reduction sparked a 2% rally in bank stocks, particularly benefiting low-float PSU banks, as it boosts lending and supports net interest margins (NIMs).

RBI fires Rs 1.16 lakh crore lifeline for banks. What it means for stock market investors

UCO Bank led PSU banks, rising 2.8% to Rs 51.10, followed by Canara Bank up 2.4% at Rs 110.75, and Bank of Baroda gaining 2% to Rs 264.95. SBI rose 1.2% to Rs 875.50 post-RBI’s policy decision. Among private banks, Axis Bank gained 2% to Rs 1,189.4, while ICICI Bank was up 1% at Rs 1,347.

Bank stocks rally up to 2% after RBI cuts CRR to 4%

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

Kotak PSU Bank ETF objective is to provide returns that closely correspond to the total returns of CNX PSU Bank Index, subject to tracking errors