Indian stock Market was laid in tatters at the start of Friday, when the US president Donald Trump announced the long-promised tariff on the Chinese goods. The BSE Sensex nose-dived to 32,650 points and the NSE nifty breached the crucial 10,000 level marks to trade at 9,968 points, down by 146 points. The sectors like Nifty Metal, Bank bled profusely. Investors may look at it as an opportunity and pick the best stocks to buy.
This was for the first time in 2018, the market crashed below 10,000 marks. However, according to the analysts there is nothing much to be worried about as domestic equity market is over-reacting to the global cues. Actually, it’s an opportune time for the long-term investors who want to start nibbling or accumulating the wealth.
Mustafa Nadeem, the CEO of Epic Research Institute explicitly mentioned in the interview
“The four digit numbers of 99.50-99,80 are crucial levels and at this point, if someone would go short then it may be a bit late.”
So, here we present you with best bank stocks that have rolled down by the tide but are worth investing for.
Best Banking Stocks to Buy Now
Axis Bank (NSE: AXISBANK)
Once counted among the top gainers stock, Axis Bank share price plunged down to 498.25 points, thanks to the exits of the senior executives including deputy MD V Srinivasan and head of corporate and transaction banking Sidharth Rath-on speculative grounds. Even though the bank has taken the stringent steps (has moved to telecom tribunal asking officials not to accent new bank guarantees) to curtail down its NPA, still the stock is in a negative territory.
But if you dig deeply, what truly matters is the fundamentals and its key financial figures which is in a positive zone. Going by its buoyant future outlook, we believe this stock shall be on your list of stocks to buy.
Union Bank of India (NSE: UNIONBANK)
After the announcement of its quarterly results, it was noted that the asset quality of state owned Union Bank of India has been deteriorated sharply in the fourth quarter and this may further stress the bank in terms of profitability if it fails to reduce the burden of NPA assets as per the plan. Further, the bank has registered a net loss of Rs 1,250 crore in December quarter, due to which its share price has plunged down to Rs 86.75.
On the positive note, it seems Union Bank stock is currently under-valued, and its growth rate has not been factored fully into the share price. So, it would be a good idea for the investor to invest in this stock.
Yes Bank (NSE: YESBANK)
The shares of Yes Bank plunged down by 2.73 points due to the long pending reforms made by the banking regulator, but the analysts are bullish on this stock because its operational performance is healthy and it continues to beat its competitors by a wide margin. The bank advances and deposits have grown up by 35% and 28% year-on-the-year in the fourth quarter. Moreover, its fundamentals are strong enough, so the investors should take the benefit of this low-tide.
In the end, we would like to conclude that though Sensex and Nifty has cascaded down but it is nothing short of euphoria moment for the Asian market. It could serve as a good bargaining technique for the long term investor and is a good opportunity to rebuild the stock/mutual fund portfolio.
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