Bank Nifty Leads Market Rally: PSU Banks Outperform Private Banks in April

The Indian benchmark indices kicked off the week on a positive note, gathering momentum as they progressed. The Nifty closed the week 1% higher at 22,643, while the BSE Sensex surged by 1.28% to end at 74,671. Although these frontline indices recorded healthy gains, the real standout was the Bank Nifty, which stole the spotlight with its remarkable performance.

Bank Nifty Achieves a New Milestone

Bank Nifty recorded its highest single-day gain in almost eight weeks, crossing the 49,000 mark for the first time ever. This milestone was a significant boost for the index, signaling a strong momentum in the banking sector. Meanwhile, the Nifty PSU Bank index also made headlines, jumping 2.56% to hit a fresh all-time high.

Public vs. Private: Which Banks Gained the Most?

Given Bank Nifty’s significant achievement, an interesting question arises: Which type of banking stocks—public sector or private sector—gained the most during April?

The Nifty PSU Bank index gained over 8% in April, while the Nifty Private Bank index recorded returns of 4.22%. This clear disparity indicates that public sector banking stocks significantly outperformed their private sector counterparts.

PSU Bank Stocks’ Performance in April

A closer look at the top-performing PSU Bank stocks in April reveals the following gains:

The table above demonstrates that all stocks in the PSU Banking sector delivered positive returns, with IOB and Central Bank leading the pack.

Private Bank Stocks’ Performance in April

However, the private sector also had notable losers. Kotak Bank dropped by 8.04%, primarily due to regulatory action by the RBI. IndusInd Bank also recorded a decline of 4.1%.

Conclusion: PSU Banks Outperform in April

The data clearly shows that PSU Banks had a stellar performance in April, with all stocks delivering positive gains, led by IOB and Central Bank. While private sector banks also showed strength, the sharp decline in Kotak Bank caused the sector’s overall performance to lag slightly. Nonetheless, with Bank Nifty achieving a new milestone, the broader banking sector appears to be on solid ground, with both public and private sector banks playing their part in the market’s upward trajectory.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.