Bank Shares to Buy: The Indian stock market declined today after a strong performance by Sensex and Nifty. However, investors’ enthusiasm has increased with both the indices reaching new highs. Meanwhile, foreign brokerage company Nomura has suggested buying 7 bank stocks now, in which investors can get returns ranging from 30 per cent to 38 per cent. These stocks include top banks HDFC Bank, ICICI Bank, Axis Bank etc. The liability franchise of all these stocks is strong and their ROA is also very good. Apart from this, the balance sheet of all the banks is also solid.
HDFC Bank’s name is at the top of this list. Nomura has recommended buy on the stock with a buy rating. A target price of Rs 1895 has been given for this stock. That is, HDFC Bank’s stock can increase by 15 percent from the current level. Presently the market price of this share is Rs. is 1644
ICICI Bank is on the second number with a buy recommendation with a target price of 1120. This stock is currently running at 926 level and it can gain 21 per cent. At present, the shares of ICICI Bank are among the strongest private sector banks.
The third stock to buy is Axis Bank. The stock is currently trading around 963 and has gained 20 per cent to reach Rs. Nomura believes that it can go up to 1160. Similarly, the share of IndusInd Bank is also likely to increase by 26 per cent from the current level. A target price of 1600 has been given for this stock. Presently this stock is running at 1273.
Nomura has given buy rating on Bandhan Bank shares at Rs. Target price of 325 has been given. The stock of Bandhan Bank is currently trading at 238 and is expected to rise by 38 per cent.
The name of State Bank of India is in this list, which is government owned and the largest bank in the country. The stock is currently trading at Rs 563 and has the potential to rise 21 per cent to Rs 680. A target price of 230 has been given for Bank of Baroda stock. This share has increased by 100 per cent in the last one year. It is estimated that the share of Bank of Baroda, which is currently at 193, will increase by 19 per cent in the coming days.
