International

Invesco Mutual Fund buys participation in these 2 bank shares of PSU. Buy, sell or hold?

Invesco Mutual Fund has purchased new stakes in two state-owned banks: Bank of India and Union Bank of India in December 2022. According to asset management company (AMC) shareholding data as of December 31, 2022, Invesco Mutual Fund bought 50,56,061 shares of Bank of India, which is 0.12 per cent of the total paid-up capital of PSU bank. Similarly, AMC bought 3,21,764 shares of Union Bank of India in December 2022. In addition to these two shares, Invesco Mutual Fund added six more shares to its portfolio in December 2022. Those six new AMC portfolio shares include GAIL (India), Berger Paints and LIC Housing Finance.

According to stock market experts, PSU bank shares have provided great returns to investors in recent months and the banking theme is expected to continue in the short to medium term. They said the upcoming 2023 budget will be the last full budget of the current central government and therefore development and employment are expected to remain at the center of the fast-approaching union budget. As the infrastructure sector has potential to solve the government’s development and job creation challenges, Finance Minister Nirmala Sitharaman may announce some big infrastructure projects in the next budget.

The experts added that large infrastructure projects would boost demand for large corporate loans and that large companies that moved abroad for a line of credit due to rising dollar rates may look to state banks for a line of credit. credit for your projects. Since these banks have corporate lending exposure, market sentiment has turned positive towards these USP banks. They said Bank of India shares may go up to $110 in the short term, while the Union Bank of India share price may rise to $95 levels each.

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Expecting a rise in PSU bank shares ahead of the 2023 budget, Chandan Taparia, derivatives and technical analyst at Motilal Oswal, said: “The current central government is expected to announce some big infrastructure project in the next budget as would be its last full budget and it is expected to focus on development and job creation in this budget.Therefore, the center can focus on the infrastructure sector in the next budget.For such infrastructure projects, it is expected that large companies look to PSU banks including Bank of India and Union Bank of India for credit line PSU banks are therefore expected to benefit from the government’s focus on the infrastructure sector This could have been the reason why Invesco Mutual Fund and other AMCs bought stake in state bank shares in December 2022.”

Advising positional investors to buy these new Invesco Mutual Fund portfolio shares, Sumeet Bagadia, Chief Executive Officer at Choice Broking, said: “Bank of India share price looks strong on the chart pattern and may buy these shares at the current price for the short-term objective of $100 and $110 each keeping the stop loss at $80 levels. Similarly, Union Bank of India shares can be purchased at the current market price for short-term goals of $90 and $95 levels each, keeping the stop loss at $75 points”.

Disclaimer: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of the Mint. We advise investors to consult with certified experts before making any investment decision.

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