Top Trending PSU Banks : These PSU Banks are trading close to their 52-week highs!

Nifty PSU Bank index soared 18 per cent in the last one month and gained more than 3 per cent last week.

Nifty PSU Bank index soared 18 per cent in the last one month and gained more than 3 per cent last week. On a YTD basis, Nifty PSU Bank index is up by more than 37 per cent. The trend seems to be positive for the PSU banks.

Following are the three major reasons why long-term investors should not ignore PSU banks:- 

1. Due to uptick in commodity prices, several steel manufacturers & commodities traders are back in profits, which previously formed a major chunk of NPA assets of these beleaguered PSU banks. With a decent recovery in the economy, several of the bad assets are expected to turn good, which may improve the financials substantially for the majority of the PSU banks. 

2. Privatisation drive by the Government of India is sentimentally positive for the PSU banks.  

3. A majority of the PSU banks have been consolidating at lower levels for quite some time but are now showing an uptrend in the momentum.    Most of the PSU banks are trading within the 10 per cent range of their respective 52-week highs, suggesting a broader bull trend in the segment. The improvement in financials is visible in a majority of the PSU Banks already. With the improving financials, suddenly, the stocks are looking attractive with value left on the table to be grabbed by the long-term value investors.   

Here is a list of the PSU banks that are trading close to their 52-week highs:-