Know why one needs to keep PSU Bank index on radar in October month!

Nifty PSU Bank is among the top two performing sectoral indices as it has gained over half a per cent.

Nifty has slipped below its important short-term moving average i.e. 20-DMA on Friday. Though the index is off its day’s low, it is still trading with a loss of more than half a per cent.  

The majority of the sectoral indices were seen trading in red with Nifty Realty being the top loser, followed by Nifty Financial Services. On the other hand, Nifty PSU Bank is among the top two performing sectoral indices as it has gained over half a per cent.  

October is generally a very good month for Nifty PSU Banks if the historical trend is keenly observed through the lenses of seasonality analysis. And the testimony of this is the fact that Nifty PSU Bank has given a positive return seven times for the last 10 years in the month of October. However, the most fascinating fact is that it has given an average of 6.1 per cent returns in the month of October.  

Nifty PSU Bank index has jumped 42.70 per cent on a YTD basis and interestingly, it is seen outperforming Nifty index on a YTD basis.