Nifty stays quiet, but PSU banks steal the spotlight
Markets opened on a slow note Tuesday—Nifty dipped below 26,200 and Sensex slipped by 132 points as investors cashed in profits after recent highs, especially in big financial stocks like HDFC Bank.
But while most of the market cooled off, public sector banks (PSUs) bucked the trend thanks to hopes that the RBI might cut rates this December.
Why does this matter?
PSU banks are having a moment: their index rose nearly 0.9% for the day and is up over 25% in the past 3 months.
Big names like SBI, Bank of Baroda, and Canara Bank saw double-digit gains because they're showing strong loan growth and improved balance sheets, with the gap narrowing compared to private banks.
Analysts think PSU banks and midcaps could lead any upcoming rally, while smallcaps look pricey right now.
The bigger picture? India's solid GDP growth and steady banking fundamentals are keeping markets supported—even if things feel a bit sideways at the moment.