The stock market today had one clear star — PSU banking stocks.
In a session where broader markets moved in a tight range, public sector banks surged ahead for the third straight day. The spotlight was firmly on Punjab National Bank, Indian Overseas Bank, Punjab & Sind Bank, Bank of Maharashtra, Union Bank of India, UCO Bank, and Canara Bank share price.
Momentum was real. Numbers backed it.
And investors were watching closely.
Market Performance: Nifty PSU Bank Index Hits New Record
The rally extended into its third consecutive session.
After gaining 2.11% in the previous trading session, the Nifty PSU Bank index jumped another 1.54%, touching a fresh record high of 9,647.
Let’s break that down:
- Three-day cumulative gain: ~5.22%
- All 12 stocks in the index traded higher
- Fresh record territory achieved
This move stands out because the broader market was largely range-bound. That means the surge was concentrated. Strong. Sector-driven.
This is not a scattered rise. It is a focused banking rally.
Punjab National Bank Leads the Charge
Among all gainers, Punjab National Bank grabbed attention first.
- Punjab National Bank share price: Jumped 3.15%
- Hit intraday high of ₹128.75
The stock showed clear strength early in the session and maintained upward traction.
Close behind were:
- Indian Overseas Bank
- Punjab & Sind Bank
- Bank of Maharashtra
- Union Bank of India
- UCO Bank
- Canara Bank share price
Each of these stocks traded higher by over 2% during the session.
The breadth of the rally is important. This wasn’t one or two names. It was the entire PSU banking pack moving together.
Fresh 52-Week Highs Add Fuel to the Rally
Momentum intensified as multiple public sector banks touched new 52-week highs.
The following banks reached fresh highs during the session:
- Bank of Maharashtra
- Union Bank of India
- Indian Bank
- Bank of India
Fresh highs usually act as psychological boosters. They tell the market one thing — strength is intact.
When multiple stocks in a sector hit 52-week highs simultaneously, it often reflects sustained institutional participation.
SBI Inches Higher; Market Cap Milestone Holds Strong
While the broader PSU pack gained sharply, State Bank of India (SBI) traded with a marginal gain.
- SBI share price: Up 0.21%
- Trading around ₹1,216
Earlier this month, SBI’s market capitalisation crossed ₹12 lakh crore.
This milestone positioned SBI as:
- The fourth most-valued listed company in the Indian stock market
- Backed by a strong performance streak
Over the past seven months, SBI’s stock has gained 53% — a notable stretch of uninterrupted strength.
Even modest gains in SBI today reinforced the sector’s stability.
Nifty Bank Index Nears Record Levels
The PSU rally wasn’t happening in isolation.
The broader Nifty Bank index hovered near its all-time high of 61,764.
During the session:
- It traded just 0.50% below its record level.
This signals that strength isn’t limited to PSU banks alone. The entire banking ecosystem is showing firmness.
Why Banking Stocks Are Rising: The Core Drivers?
The rally across PSU banks is supported by fundamental developments reported in recent quarterly updates.
Key structural drivers include:
- Acceleration in system-wide credit growth
- Recovery in margins
- Improved asset quality trends
Let’s look at the key operating trends mentioned.
Credit Growth Accelerates in December Quarter
During the December quarter:
- Public sector banks reported credit growth of around 15% year-on-year
- Banks under coverage universe reported 13% YoY loan growth
- This compares to 12% YoY growth in Q2
That incremental improvement matters.
Growth is not stagnant. It is building gradually.
Retail and secured SME lending segments showed notable traction. Corporate loan growth showed signs of revival as well.
This creates a balanced credit mix across segments.
Margins and Asset Quality Remain Steady
Another pillar supporting the rally is margin stability.
Alongside credit growth:
- Margins remained resilient
- Asset quality trends stayed stable
- Slippages in Q3 were reported as stable
- Credit costs moderated further
Support also came from:
- Stable corporate portfolios
- Improved retail collections
- Gradual normalisation in microfinance stress
A stable asset quality environment reduces balance sheet pressure. That tends to support sector sentiment.
Union Budget Shock, Followed by Sharp Recovery
It’s important to remember that earlier this month, PSU bank stocks saw pressure.
The trigger was the higher borrowing plan announced in Union Budget 2027 for the next fiscal year.
The reaction was swift.
But equally swift was the recovery.
Since then:
- Stocks have staged a strong comeback
- The sector has regained lost ground
- Now the Nifty PSU Bank index sits at record levels
That rebound speaks volumes about resilience.
Stock Market Today: What This Means for PSU Banks?
Let’s summarize what we saw in the stock market today:
- Nifty PSU Bank index at 9,647 (record high)
- Three consecutive sessions of gains
- Total 3-day rally of ~5.22%
- Punjab National Bank share price up 3.15%
- Indian Overseas Bank, Union Bank, Bank of Maharashtra, UCO Bank, Canara Bank share price — up over 2%
- Multiple banks at 52-week highs
- SBI steady near ₹1,216
- Nifty Bank index just 0.50% below all-time high
The rally was broad-based.
It was backed by financial performance data.
And it unfolded even when the broader market moved sideways.
Company-Wise Snapshot
Punjab National Bank
- Intraday high: ₹128.75
- Gain: 3.15%
Indian Overseas Bank
- Traded higher by over 2%
Punjab & Sind Bank
- Gained over 2%
Bank of Maharashtra
- Up over 2%
- Hit fresh 52-week high
Union Bank of India
- Advanced over 2%
- Reached fresh 52-week high
UCO Bank
- Traded with gains above 2%
Canara Bank Share Price
- Rose more than 2%
SBI
- Up 0.21%
- Trading at ₹1,216
- Market cap earlier crossed ₹12 lakh crore
- 53% gain over seven months
The Bigger Picture
This is not just a one-day move.
The pattern is:
- Improving quarterly numbers
- Strong credit growth
- Controlled asset quality
- Sector-wide momentum
When all 12 PSU banking stocks trade higher together, that reflects sector conviction.
And today’s record print of 9,647 on the Nifty PSU Bank index reinforces that narrative.
Summary: PSU Banks Take Control in Stock Market Today
To put it simply:
Public sector banks are leading the charge.
In the stock market today, PSU banking stocks outperformed a range-bound broader market. Punjab National Bank, Indian Overseas Bank, Union Bank of India, Bank of Maharashtra, Punjab & Sind Bank, UCO Bank, and Canara Bank share price all showed strong upward momentum.
The Nifty PSU Bank index hit a record high of 9,647 after a three-day surge of over 5%.
Credit growth is accelerating. Margins are steady. Asset quality remains controlled.
Source: Livemint
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