Banking sector at its peak

As markets consolidate, we will take a look into the sectoral performance across the board. We have analysed stock performance over last one month. We have observed that on an average in last one month, the average returns have been 5.5 per cent across sectors. Among all the sectors considered, BSE Bankex has given highest return of 10.8 per cent followed by FMCG (9.0 per cent), Realty (8.5 per cent), Auto (6.9 per cent) and Metal (6.4 per cent) in the list.

We have observed that Bankex, FMCG and Realty sector are more prone to liquidity in economy and that is the reason they have performed well among others. 

As the banking sector reaps rich rewards for its investors, we have analysed banking sector’s last one-month performance. We have observed that among 41 private and public sector banks almost 23 banks gave more than 1 per cent return and rewarded investors with average return of 4.07 per cent. 

State Bank of Mysore led the rally with 20.00 per cent returns in last one month. Dhanlaxmi Bank Ltd., (19.39 %), The Federal Bank (17.65 %), Karnataka Bank (17.30 %) and Yes Bank ( 17.17 %) and also filled the basket of investors with handsome returns. 10 banking stocks have given double digit growth numbers to the investors. The list includes above five stocks plus ICICI, Punjab Sind Bank, Axis Bank, SBI and South Indian Bank. We have observed that investors cheered for the banking sector related to the government’s statement of venturing to clear the NPA burden from the slates of PSU banks.