Shares of Dhanlaxmi Bank surged 5% in intraday trade, reaching ₹53.75 apiece, the highest level since August 2014. The stock has seen a remarkable ascent in the last 10 trading sessions, reflecting a stellar return of 69%.
While the bank nifty might be the facing pressure in today’s trading session, it is because of the one single bank with high weightage in the indices, for contrarian and short term trader there might be an opportunity given the fact that it has been witnessed that such move are followed by short covering sooner or later. But again this probably is trade for high risk traders or investors who have the ability to take a stand against market narrative.
There are many private sector banks who are offering an interest rate up to 8.1% on senior citizen fixed deposit (FDs). However it must be noted that if the interest from all the FDs in a particular bank exceeds Rs 50,000 then tax deducted source (TDS) would be deducted. Read here to know the senior citizen FD rates of top five private sector banks.
“There is a lot of basket buying in largecaps and in the frontline indices because of which larecap banks are moving up. I am actually a little wary of them. I think they should cool off, correct at some point in future. These are great banks, great businesses. I am not in any way saying there is any problem with HDFC or ICICI, I just find them overvalued right now.”