Why PSU banks are the talk of the town today
On Friday, public sector banks stood out from the crowd—while most stocks slipped, PSU banks like Union Bank (+4.6%), Canara Bank (+2.4%), and Bank of India all helped push the Nifty PSU Bank Index up 1.5%.
Meanwhile, the main Nifty50 index slid by 0.6%.
Foreign investment cap increase could mean a $4 billion boost
There's buzz because the foreign investment cap might jump from 20% to 49%, which could mean a $4 billion boost for these banks—State Bank of India alone could see $2.2 billion roll in.
Plus, strong quarterly results (like Canara's 13.7% loan growth and nearly 19% profit jump) are turning heads.
Other buzz in the banking sector
Plans to add more banks (possibly Yes Bank and Indian Bank) to SEBI's Bank Nifty index, merger talks between Union Bank and Bank of India, and big international investments—like Emirates NBD dropping $3 billion into RBL Bank—are giving investors even more reasons to pay attention right now.