PSU banks have been performing well on the street for the last more than one year. Even in the correction which the market saw last in the last couple of weeks, PSU banking stocks are amongst the first to rebound when there is any sort of recovery in the market. The reaction of the street to their Q2 earnings is also indicative of underlying hope in the sector. But the whole operating landscape of each PSU bank is very different, right from the exposure to particular sectors and industrial groups to the geographical region in which they are operating. So while they are called as one PSU space, each of them probably will have its own journey. So should you be selective in looking at them or buy them as a basket?
“In the case of the insurance sector, APE growth is going to be the key driver and if growth does come back over the next few months and we start seeing signs of that, the valuation, especially where life insurance is concerned, appears to be fairly attractive. We would incrementally start evaluating this sector given the growth valuation dynamics.”
"Given the current scenario, it s prudent to exercise caution when considering HDFC Bank. Waiting for more clarity and price stability before making a decisive move is advisable. The stock has a critical support level at 1500. A breach below this support level may trigger additional selling pressure, potentially leading to a decline towards 1430."
After four years of under performance, in the last one year, Whether it is one week, one month, three months or one year, in all time frames PSU banks stocks have done well as they have logged positive returns. Is this rally for good or just another one which will fizzle out. If one goes by what analysts are saying, it will be extremely stock specific. So while they are called as one PSU space, each of them probably will have its own journey.