It was suggested by market Pundits that Bank stock will be subdued after some major policy changes all over the world. But Indian investors and traders are prudent enough to rubbish those suggestions and reconfirmed their interest in them. It seems the growth of Indian banking sector will be highest amidst global uncertainties.
Private Banks especially the better ones showed some good runs in the recent past. Bank of Rajasthan, Yes Bank, DCB and even sleepy Centurion Bank of Punjab were all sparkling for different reasons. But probably traders are also betting on proposed decontrol of banking scenario in near future. The private Banks will be the target of bigger International Banks for acquisition. Most of the private Banks are still attractively priced and there are still plenty of spaces to grow, for them. ICICI Bank is already holding its own forte.
The present star among the subdued Public sector Banks (PSB) is State Bank of India. The Bank is planning to grow unlike its peers. So it is attracting the attention of investors. The stock has already seen a run and is poising to run further. The news of stock split and the plan to raise capital to keep up with the expansion needs are already there. Also the news that State Bank of India is to mop up close to INR 6000 crores through equity offering which will dilute the holding of the government to 55% from present 59.73%. All these developments are poising to increase share holders value further.
We are in a growing market and the outlook of a growing market will be different to other matured markets. Why Pundits can not see it?
Small investors may accumulate some of the above; they should give returns beyond our expectations.
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