Why PSU Bank stock is on rise in this weak falling market| PSU Bank Stock in Focus

Last Updated on September 23, 2023 by Brajesh

PSU Bank Stock in Focus : Due to weak global signals there was continuous selling pressure in Indian Share market. However, one sector was not affected and that sector is PSU Bank. So in this article we will know the about PSU Bank stock in focus and reason for their Steller performance in Indian market on 22nd September 2023.

PSU Bank Stock in focus

Last week, there was high selling pressure in Indian Stock market due to weak global signals. Continuous selling and downward trend was the feature for most of the stock except for few sector and out of those one of them is PSU Bank Stock.

Even though 21st September was similar for PSU Bank stock also but the next day i.e. 22nd September, there was a stormy rise in Public Sector Banking Stock with State Bank Of India as the top gainer among 30 stocks included in BSE Sensex. PSU Bank index was 4% up in this falling market even after huge pressure on other sectors.

Now the biggest question is the reason for such a Steller performance of PSU Bank Stock in focus, any specific news which has triggered the movement of the PSU Bank stock and the support which PSU Bank is getting in this falling market.

Reason for rise in PSU Bank stock?

India’s inclusion in JP Morgan GBI-EM was one of the most important news which cam on Friday , 22nd September 2023, hence now India’s Government bonds will be included in the index , As per Market experts now India’s Government bond will be included in 3 EM bond indices

Now this news has a big impact on Indian economy as the this will improve India’s domestic financial ecosystem. PSU Banks can now provide more funds to private sector which will ultimately have a positive impact on India’s fiscal decision.  JP Morgan news was one of the most important triggered for PSU Banks Stock in focus as well as few Asset Management Companies’

PSU Bank Stock in Focus
PSU Bank Stock in Focus

India inclusion in JP Morgan GBI-Gem

India will join GBI -Gem from 28th, June 2024. 73% of its benchmark investors were in favor of including India in GBI-GEM. At present 23 Government of $330 billion will be included in first year then it will get increased by 1% every month for next 10 months.

As per reports India bond market is more then 1 Lakh Crore.

What does India inclusion in JP Morgan GBI-Gem mean?

India’s inclusion in JP Morgan GBI- Gem will strengthen the Indian Currency i.e. Rupees (₹). Apart from strengthening currency we can expect inflow of $2000 to $2200 crore in Indian market which will support the economy and index as well.

In past 1 year PSU Bank Stock in focus index soar over 60 percent compared to 10 percent and 12 percent in Nifty Banks and Nifty 50.

PSU Bank Stock news

7 Financial Deadlines ending September 2023, read this to avoid huge losses

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