Indian stock markets have been on an extreme volatile patch in the last six months with market participants experiencing the record highs levels of the headline indices Sensex and Nifty to the massive sell-off in the month of February.
Indian stock markets have been on an extreme volatile patch in the last six months with market participants experiencing the record highs levels of the headline indices Sensex and Nifty to the massive sell-off in the month of February. Over the course of last six months, PSU bank shares have been beaten very badly on escalated volatility coupled with the downtrodden effects of India’s biggest banking scam erupting at nation’s second-largest PSU bank by assets Punjab National Bank. After the PNB fraud, several frauds have emerged in other PSU banks following which the respective stocks have fallen to multi-year lows.
In the corresponding time under review, there was only one PSU bank share that has shown positive returns gaining more than 10%. Shares of the Mumbai-headquartered IDBI Bank have returned over 10% in the last six months outperforming the benchmark Nifty PSU Bank index and all the 20 other PSBs (public sector banks) listed on Indian bourses.
The stock of IDBI Bank had surged 10.45% to Rs 67.1 as from a share price level of Rs 60.75 as on 13 November 2017 on BSE. Shares of IDBI Bank made a 52-week high of Rs 89.8 on 5 March 2018 and a 52-week low of Rs 50.25 on 14 August 2017.
In the quarter ended 31 March 2018, all the PSU banks remain under close watch due to the tightened environment with caution prevailing on the back of one after the other fraud unwinding at banks. With regard to the Q4 results season, the January-March financial performance of big PSU banks such as State Bank of India, Punjab National Bank, Bank of Baroda will keenly be watched by market participants. In the series of fourth-quarter corporate earnings, PNB is scheduled to announce the financial results for the quarter and the year ended 31 March 2018 on 15 May 2018.