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On Friday, May 30, 2025, the Nifty PSU Bank Index recorded an increase of approximately 3% (2.88%). This movement was associated with factors such as market expectations regarding possible Reserve Bank of India (RBI) interest rate changes, recent earnings reports from public sector banks (PSBs), and relative valuations.
The Nifty PSU Bank Index closed at 6,983.80 (intraday high; closing value around 6,976), showing an increase of around 3%. In comparison, the broader Nifty 50 index saw a slight decrease of approximately 0.25% to 0.33% during the same session.
Bank of Maharashtra: 5.5%
Indian Overseas Bank: 5.2%
Union Bank of India: 4.8%
State Bank of India: 4.0%
Canara Bank: 3.7%
These figures indicate increased market activity in the PSU banking sector during the trading session.
Key elements influencing the PSU banks sector include:
Expectations around RBI Interest Rate Adjustments: Market participants have noted discussions on possible RBI interest rate changes, which may impact borrowing costs and credit availability.
Recent Earnings Reports: Several PSBs have released their financial results. For example, IDBI Bank reported a net profit of ₹7,515 Crores for FY25, representing a year-on-year increase of 33% (as per recent sector trends and company disclosures). These financial updates contribute to sector dynamics.
Market analysts have observed that the Nifty PSU Bank Index crossed a resistance level near 6,845 during recent trading sessions. The Relative Strength Index (RSI), a momentum indicator, is approaching levels often considered “overbought,” which some analysts interpret as a sign of strong momentum but also advise caution.
Dubai-based Emirates NBD has expressed interest in acquiring a 61% stake in IDBI Bank through an all-cash offer valued between $6-7 billion (approximately ₹50,000-60,000 Crores). This follows RBI's in-principle approval for Emirates NBD to establish a wholly-owned subsidiary in India.
Note: The securities quoted are for illustration only and are not recommendatory. Investors should carefully consider their investment objectives and seek professional financial advice tailored to their individual circumstances.
This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.
Sources
Business Standard — Nifty PSU Bank index surges 3%; SBI, IOB, Canara, Union Bank rally up to 4%
https://www.business-standard.com/markets/news/nifty-psu-bank-index-surges-3-sbi-iob-canara-union-bank-rally-up-to-4-125053000786_1.html
Moneycontrol — Emirates NBD likely top contender for IDBI Bank stake https://www.moneycontrol.com/news/business/banks/emirates-nbd-likely-top-contender-for-idbi-bank-stake-dipam-said-to-have-explored-valuations-with-potential-bidders-13070063.html
Reuters — India central bank gives Emirates NBD 'in-principle' nod to set up local unit
https://www.reuters.com/world/india/india-central-bank-gives-emirates-nbd-in-principle-nod-set-up-local-unit-2025-05-19/
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