PSU Bank Stocks Surge as Canara Bank Hits 52-Week High | Stock Market Today

Market Performance

Wednesday, September 24, saw public sector bank stocks defy the overall subdued market mood. Among the bright spots, Canara Bank share price jumped over 2% to ₹124.55, marking a fresh 52-week high.

The Nifty PSU Bank index climbed 1.5%, hitting 7,567.50, surpassing its previous one-year high of 7,473.00. This made the PSU banking sector the only index in the green during late morning trade.

Main News: What Drove the Rally

The sudden surge in PSU bank stocks followed reports that the government is considering raising foreign investment limits in government-owned banks.

• The current FPI limit of 20% could be increased to as much as 49%, while ensuring the government retains a majority stake above 51%.
  
  
• This proposed move is expected to bring significant capital into the banking sector, supporting growth across several PSU banks.
  
  

Among the top performers:

• State Bank of India (SBI): rose 1.13%, hitting ₹880.50 (52-week high)
  
  
• Canara Bank: surged 2% to ₹124.55
  
  
• Indian Bank: rallied 3.8% to ₹722
  
  

Other gainers in the PSU Bank index included Bank of Baroda, Indian Overseas Bank, Bank of India, and Punjab & Sind Bank. Only a few counters, like Maharashtra Bank, Union Bank of India, and Punjab National Bank, traded in the red.

Company Details: Canara Bank

Canara Bank’s strong performance comes after a period of relative pressure. The stock has climbed nearly 19% in September, marking its biggest monthly gain in three years.

• 52-week high: ₹124.55 per share
  
  
• YTD gain: 23%
  
  
• This month’s rally is also extending the stock’s positive momentum, signaling renewed investor confidence in PSU banking stocks.
  
  

The surge coincides with expectations of healthier credit demand and potential inflows from increased foreign investment limits, which have strengthened sentiment around the bank.

Summary

In short, PSU bank stocks outperformed the broader market today, led by Canara Bank’s 52-week high of ₹124.55, SBI, and Indian Bank.

• The Nifty PSU Bank index hit a one-year high of 7,567.50.
  
  
• Several PSU banks recorded fresh 52-week highs, highlighting a strong sectoral rally.
  
  
• Government plans to increase FPI limits from 20% to 49% provided an added boost.
  
  

The move underlines the growing attention on PSU banks in the stock market, as foreign capital inflows and positive sectoral sentiment drive key banking stocks higher.