Current price is far from the real time NAV

Less expense ratio implies better returns over the long term

Expense Ratio

ETF has not been able to closely match its benchmark returns

Tracking Error

ETF has not been able to generate better price return than bank FD

Return vs FD Rates

Good time to consider, as ETF is not in overbought zone

Entry Point

Nifty PSU Bank fell by 2.53% at 1,867.50 and Nifty Private Bank slumped by 2.6% at 17,164.35.

Nifty Bank sheds 800 pts on broad-based selling amid earnings season; Bandhan Bank dives 8% after Q3

Ever since the markets started making new highs since November, the Nifty Bank has rallied 34.7%. Conversely, the Nifty PSU Bank index has rallied 52% for the same period. The rally in PSU banking stocks has been driven by SBI, Bank of Baroda and Canara Bank, among others.

PSB stocks may play catch-up if asset quality stays stable

Nifty PSU Bank plunged by 3.64% at 1,908.60. While Nifty Private Bank slipped by 1.16% at 17,593.70.

Nifty Bank sheds 500 pts; PSU Bank top laggards; Bandhan Bank, BOB dips 5-6%

K V Kamath said despite their inefficiencies and declining market shares, public sector banks will play an important role in the India growth story.

ETMGS 2021: Bad loan fear overblown, PSU banks may only need hand-holding, says KV Kamath

KV Kamath said despite their inefficiencies and declining market shares, public sector banks will play an important role in the India growth story. “PSBs are going to be an important part of our banking system. We cannot wish it away, neither should we. Strong PSBs are required to meet our aspiratio…

Strong PSBs are required to meet our aspirations at least for next five years’ growth: KV Kamath at ETMGS 2021

The gains in the market were broad-based with the Nifty Smallcap 100 and Nifty Midcap 100 index climbed 0.6 per cent and 1.0 per cent, respectively.

Market Movers: Tyre, PSU banks stocks rally; 27 stocks give buy signal

1. The Ascent to mount 50,000
The upward story on D-Street continues, Sensex continues to ascertain towards the 50,000 marks is just 200-300 points away from that level. Nifty hovers around 14,600. IT stocks power the market.

2. Tata Communications slips on stake sale news
The government looks to sell its entire 26% in Tata Communications through the offer for sale root. The transaction is targeted for completion by March 20. The stock meanwhile is sliding on the back of a weak quarter.

3. Bajaj Finance poised for a mixed Q3
Bajaj Finance set to declare numbers today. Bajaj is expected to witness a drop of over 20% in profit due to risk average, accelerated provisioning, this NBFC may continue to face pressure on the margin front.

4. Budget: ₹25,000 cr for PSB recap?
The government is likely to set aside ₹25,000 crores in the upcoming budget for recapitalising PSU banks, reports The Economic Times. The Finance Ministry has sought details from lenders on capital requirements. NPAs and fundraising to decide on the final capitalisation.

5. Ashok Leyland: Personal mobility driving demand
Ashok Leyland MD & CEO in an exclusive interaction with ET NOW said that personal mobility is driving the demand for consumer vehicles. He also insisted that technology adoption is inevitable in the auto space going ahead.

6. Indigo Paints IPO worth a subscribe?
The IPO frenzy continues on Dalal street with another issue kicking off today. Indigo paints witnesses stellar anchor participation and is priced in the range of ₹14881-15490/share. At such expensive valuations, is it worth a subscribe?

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Sensex set to mount 50,000 mark; Indigo Paints IPO worth a subscribe? | Top News

Public sector banks are seeing their loan book growing across all major segments agriculture, retail, MSMEs, personal loans except corporates and large businesses. On average PSBs have seen a growth anywhere between 7-13% since the pandemic.

PSU banks step up to aid recovery, open credit taps

Fund to be set up with backing of public sector banks and Kerala State Industrial Development Corporation

Kerala plans to set up dedicated VC fund, open govt market for startups

With the RBI raising concern over the issuance of zero coupon bonds for recapitalisation of public sector banks (PSBs), the Finance Ministry is examining other avenues for affordable capital infusion including setting up of a Bank Investment Company (BIC), sources said.

Finmin Looks at BIC Model After RBI Raises Concern Over Zero Coupon Bonds for PSBs Recap

One of the expectation is to reduce number of public sector banks from 12 to 4. It’s already reduced from 27 to 12 through mergers.

Income Tax, Corporate Tax, Merger of More Banks: Key Expectations from a ‘Never Before’ Budget 2021

Kotak PSU Bank ETF objective is to provide returns that closely correspond to the total returns of CNX PSU Bank Index, subject to tracking errors

Kotak Nifty PSU Bank ETF

Average daily traded value of the ETF is high

Kotak Nifty PSU Bank ETF

Kotak Nifty PSU Bank ETF

Return vs FD Rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If the ETFs price return is lower than this rate, investors are better off investing the amount in a FD

Entry Point
High demand for an ETF increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the ETF

News & Opinions

Nifty Bank sheds 800 pts on broad-based selling amid earnings season; Bandhan Bank dives 8% after Q3

PSB stocks may play catch-up if asset quality stays stable

Nifty Bank sheds 500 pts; PSU Bank top laggards; Bandhan Bank, BOB dips 5-6%

ETMGS 2021: Bad loan fear overblown, PSU banks may only need hand-holding, says KV Kamath

Strong PSBs are required to meet our aspirations at least for next five years’ growth: KV Kamath at ETMGS 2021

Market Movers: Tyre, PSU banks stocks rally; 27 stocks give buy signal

News Video

Sensex set to mount 50,000 mark; Indigo Paints IPO worth a subscribe? | Top News

PSU banks step up to aid recovery, open credit taps

Kerala plans to set up dedicated VC fund, open govt market for startups

Finmin Looks at BIC Model After RBI Raises Concern Over Zero Coupon Bonds for PSBs Recap

Kotak Nifty PSU Bank ETF

Return vs FD RatesFixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If the ETFs price return is lower than this rate, investors are better off investing the amount in a FD

Entry PointHigh demand for an ETF increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the ETF

News & Opinions

Nifty Bank sheds 800 pts on broad-based selling amid earnings season; Bandhan Bank dives 8% after Q3

PSB stocks may play catch-up if asset quality stays stable

Nifty Bank sheds 500 pts; PSU Bank top laggards; Bandhan Bank, BOB dips 5-6%

ETMGS 2021: Bad loan fear overblown, PSU banks may only need hand-holding, says KV Kamath

Strong PSBs are required to meet our aspirations at least for next five years’ growth: KV Kamath at ETMGS 2021

Market Movers: Tyre, PSU banks stocks rally; 27 stocks give buy signal

News Video

Sensex set to mount 50,000 mark; Indigo Paints IPO worth a subscribe? | Top News

PSU banks step up to aid recovery, open credit taps

Kerala plans to set up dedicated VC fund, open govt market for startups

Finmin Looks at BIC Model After RBI Raises Concern Over Zero Coupon Bonds for PSBs Recap

Return vs FD Rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If the ETFs price return is lower than this rate, investors are better off investing the amount in a FD

Entry Point
High demand for an ETF increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the ETF