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

Canara Bank is quoting at Rs 101.83, down 1.5% on the day as on 13:19 IST on the NSE. The stock jumped 41.45% in last one year as compared to a 24.47% rally in NIFTY and a 34.98% spurt in the Nifty PSU Bank index.

Canara Bank down for fifth straight session

The PSU Bank index had zoomed 200% to a high of 8,053 after breaking above its 200-DMA in July 2022. At present, most PSU Bank stocks, barring SBI, are trading below this long-term moving average: nifty psu bank index

Nifty PSU Bank index dips below 200-DMA after more than 2 years; what next?

The Nifty PSU Bank index, the top loser among sectoral indices, was down 1.1 per cent at 6,581.40, as compared to the 0.16 per cent rise in the Nifty 50 at 11:14 AM on Monday.

PSBs extend fall after Goldman Sachs downgrades SBI; Canara, UBI down 3%

At 10:30 IST, the barometer index, the S&P BSE Sensex, shed 23.38 points or 0.03% to 81,160.55. The Nifty 50 index lost 12.10 points or 0.05% to 24,840.05.

Broader mkt underperforms; PSU banks slide

The Enforcement Directorate has attached assets worth over Rs 5,000 crore in a bank loan fraud case involving the insolvent Amtek Group. The action follows the arrest of promoter Arvind Dham and reveals the use of shell companies to divert loans and create bogus assets, causing significant losses to public sector banks.

Bank fraud: ED attaches Amtek Group’s assets worth over Rs 5,000 cr

After performing well for a period of almost two years, PSU banks have been lately under performing. While it is normal that after a phase of out performance a sector witnessing some consolidation and even might under performer. But in the case of PSU banks, the fear is that it might end up becoming a sector which under performs for a long time. But everything has to be looked into in context. Yes, banking as a sector there are short term headwinds. The question is whether those headwinds are cyclical in nature or they are permanent in nature and which part of the operating matrix of banks is going to get hit by these headwinds. Understanding headwinds probably helps in taking better decisions when it comes to a sector like banking.

PSU banks: Short term headwinds, provide long term opportunity: 9 PSU banks stocks, 6 with an upside potential 36% to 48% in next 1 year

Quick Wrap: Nifty PSU Bank Index declines 3.57%, NIFTY Tumbles 1.17%

All sectoral indices on the NSE declined, with the Nifty PSU Bank being the top loser.

Nifty, Sensex Log Worst Selloff Since August Ahead Of Key US Jobs Data: Market Wrap

All sectoral indices traded lower with Nifty PSU Bank falling the most by 2.7%.

Stock Market Today: Nifty, Sensex Log Worst Selloff Since August Ahead Of Key US Jobs Data

Rakesh Arora of Go India Advisors explains the shift from PSU banks to private banks due to the maturing banking cycles and better management. He highlights the role of solid fundamentals and macroeconomic improvements in driving market growth, while also noting positive trends in domestic-focused sectors and the pharma industry.

Shift from PSUs to private banks has started and should continue for next few months: Rakesh Arora

Bank of Maharashtra is quoting at Rs 60.32, down 1.44% on the day as on 13:19 IST on the NSE. The stock jumped 18.75% in last one year as compared to a 26.04% rally in NIFTY and a 42.72% spurt in the Nifty PSU Bank index.

Bank of Maharashtra drops for fifth straight session

NIPPON INDIA ETF PSU Bank BeES objective is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the CNX PSU Bank Index