Public sector bank stocks stayed under pressure on December 29, extending their decline for the fourth consecutive trading session. The mood remained cautious across the PSU banking space, with selling seen in most frontline names as the broader stock market today reflected risk-off sentiment in financials.
The softness in PSU banks came despite the sector’s strong run in recent months. Profit booking and consolidation continued to weigh on share prices.
Market Performance: Nifty PSU Bank Index Slips Again
The selling pressure pushed the Nifty PSU Bank index lower by 0.3%, taking it down to 8,263.55 levels by 11:20 am on Monday.
This marked the fourth straight session of decline for the index, signaling a clear pause after the earlier rally in PSU bank stocks.
Short-term volatility dominated trades, with most stocks trading in the red for the session.
Main News: Selling Pressure Seen Across PSU Bank Stocks
The fall was broad-based, with multiple PSU banking names losing ground simultaneously.
Top losers on the index included:
- Central Bank of India share price fell more than 1%, trading around Rs 36.47
- Union Bank of India declined close to 1%
- Punjab National Bank (PNB) slipped around 1%
- Punjab & Sind Bank (PSB) dropped nearly 1%
- Bank of India was down about 1%
- UCO Bank also fell close to 1%
Selling was not limited to smaller banks. Even larger PSU lenders traded lower during the session.
Company-Wise Movement: Who Fell, Who Held Ground
Several heavyweight PSU banks remained under pressure, though losses were relatively contained.
Banks trading in the red with marginal declines:
On the other hand, a few PSU bank stocks managed to resist the broader weakness.
Stocks that bucked the trend:
- Canara Bank share price traded marginally higher
- Bank of Maharashtra share price also saw small gains
This mixed performance highlighted stock-specific action even as the overall PSU banking index stayed weak.
What’s Driving the PSU Bank Decline?
The recent fall appears to be driven by consolidation after a strong rally seen earlier in the year. With PSU bank stocks already delivering sharp gains, some cooling-off was visible as traders booked profits.
The current phase reflects a pause rather than a sharp reversal, as prices adjust after the recent surge.
Importantly, no new triggers or fresh financial data were reported in this session. The movement remained largely sentiment-driven and index-led.
Summary: PSU Bank Stocks Remain Volatile
To wrap it up, PSU bank stocks stayed under pressure for a fourth consecutive session, as the Nifty PSU Bank index slipped to 8,263.55.
- Broad selling hit Central Bank of India, Union Bank, PNB, PSB, Bank of India, and UCO Bank
- SBI, Indian Bank, IOB, and Bank of Baroda traded with mild losses
- Canara Bank and Bank of Maharashtra stood out with marginal gains
- The trend reflected consolidation after a strong earlier rally in PSU banks
As the stock market today stays data-light for the sector, PSU bank share prices are moving closely with overall market sentiment and short-term positioning rather than fresh fundamentals.
For now, volatility remains the key theme in PSU bank stocks.
Source: Moneycontrol
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