The widespread positions in the options of Nifty 50 indicates the uncertainty over market direction among traders. The board range indicated by the options data is 17000-19000 range for the 50-stock index.

"The market seems to be looking at some adverse scenarios of banks' exposure to the Adani Group especially when their share prices are falling," said Siddarth Bhamre, head of research Religare Broking. "That is weighing down the risk appetite for bank shares."

The overall numbers look good. They were above estimates, mainly the beat was due to the higher NIMs expansion and also if we look they have scaled up the contingent provisions which was a key positive. In terms of key negative which you have highlighted that the deposit mobilisation moderated bit on YoY basis as well as on a quarter-on-quarter basis.

Outlooks on the long-term ratings of all four banks remain stable.

Punjab National Bank, incorporated in the year 1969, is a banking company (having a market cap of Rs 64854.88 Crore).

SBI's offer to sell this account comes even as the Orissa High Court, for the second time, stayed initiation of the insolvency process against Visa after the Cuttack bench of the National Company Law Tribunal (NCLT) had admitted the borrower for commencement of bankruptcy proceedings, acting on a plea by Punjab National Bank (PNB) late November.

"We were quite positive on real estate and the stocks really did not do well despite the sales. I could sense that there are two things which the market is worried about. Last year, big inflation came through in cement and all kinds of building materials which go into building a house and that would probably be the only reason of concern which I could figure out. Apart from that, the sector outlook is really healthy and it is again representative of the rich mens consumption which is really booming in India. "

Overall, the SMA-2 book stands at ~0.3% of loans. Improvement in the corporate credit cycle along with the fact that trailing loan growth in the corporate segment has been muted in the past few years should moderate NPL formation further.

Apart from credit growth and refinancing, the market condition is conducive, if you look at the long-term rates for bonds," said Soumyajit Niyogi, director, core Analytical Group at India Ratings and Research. "So they are beefing up capital.Indian state-run and private banks raised an aggregate of 611.94 billion rupees ($7.39 billion) in October-December, more than double the 301.34 billion rupees raised in July-September, according to data compiled by Reuters.

Promoters held 73.15 per cent stake in the company as of September ended quarter while FIIs owned 0 per cent stake and DIIs 12.26 per cent.

Sharekhan is bullish on Punjab National Bank has recommended buy rating on the stock with a target price of Rs 64 in its research report dated December 26, 2022.

Poonawalla Fincorp surged 14 percent to Rs 280.5 and formed big bullish candle on the daily charts, in fact engulfing both previous red candles, with large volumes. The stock has seen a decisive breakout of big horizontal resistance trend line adjoining February 16 and December 23.

The Nifty Auto index closed 1.47 per cent up at 12415.4.

“The market has fallen quite substantially and there is absolutely no point in selling stocks if we are holding good quality stocks. I have been bullish on like L&T, I believe is going to be doing very well going forward and if somebody is building their portfolio after correction, L&T definitely is a good buy at current level.”

The Nifty Auto index closed 1.11 per cent down at 12554.7.

Nifty futures on the Singapore Exchange traded 72 points, or 0.39 per cent, lower at 18,498, signaling that Dalal Street was headed for a positive start on Wednesday.

Nifty futures on the Singapore Exchange traded 31 points, or 0.17 per cent, lower at 18,456, signaling that Dalal Street was headed for a negative start on Tuesday.

The report added that internal approvals are in and Tata has received an in-principle nod from the other big investor in the AMC - global investment management firm T Rowe Price Group, which holds around 23% stake.

US stocks fell for the third consecutive session on Friday as investors continued to worry over the impact of tightening monetary policy on economic growth.

“Stick with SBI, BoB and CanBank among the largecaps in financials. As a disclosure, we were very bullish on PNB and Union Bank. That has more than doubled. We have taken some chips off the table but we still think there is room and one can continue to grow in the credit splurge which is going to take place.”

Money managers do expect the banking pack to remain on the top of the betting list in 2023 as a recovery in the domestic economy will see the sector leading earnings growth for India Inc.

Foreign portfolio investors (FPIs) on Thursday net sold shares worth Rs 711 crore, provisional data showed. DIIs net bought shares to the tune of Rs 261 crore.

U.S. stock indexes rallied to kick off the trading week on Monday, lifted in part by gains in Microsoft and Pfizer, as investors girded for inflation data on Tuesday and a policy announcement from the Federal Reserve later in the week.

Banks typically write off loans where there is no scope of recovery . Banks need to set aside money to cover potential losses from such loans. This impacts the profitability of banks.

However, JPMorgan estimated earnings to remain under pressure in F23/24 as the company catches up on back book provisioning. This keeps the F24 estimate broadly unchanged. However, with limited new stress formation and system growth itself picking up, it sees the further scope of re-rating at PNB, the brokerage said.

The brokerage has upgraded Punjab National Bank from a long standing 'underweight' to 'overweight' stance

BofA Securities maintained its buy rating on Sun Pharma with a target of Rs 1,000. Flattish llumya trend and the company is waiting for Winlevi Rx to pick up. Sun Pharma's global specialty revenue growth was 30% in H1FY23, this was largely aided by llumya ramp-up. Regulatory overhang continues.

Nifty futures on the Singapore Exchange traded 43.5 points, or 0.23 per cent, lower at 18,547.50, signaling that Dalal Street was headed for a negative start on Monday.

Another sector that is looking attractive is capital goods and from that space we like L&T. We have witnessed very strong momentum throughout the week and the stock is making a series of higher top, higher bottom formation. So there is a clear uptrend in the stock and we believe that L&T will continue its upward momentum.

Another sector that is looking attractive is capital goods and from that space we like L&T. We have witnessed very strong momentum throughout the week and the stock is making a series of higher top, higher bottom formation. So there is a clear uptrend in the stock and we believe that L&T will continue its upward momentum.

Some of the PSU banks like Punjab National Bank have not moved up that much, probably it is a great time to buy. Our belief is that all PSU banks will come with a stellar set of numbers due to a combination of multiple factors including loan growth, asset recovery, asset quality improvement and a whole host of other such things and so buying into them will probably give the investors a bang for the buck.

Some of the PSU banks like Punjab National Bank have not moved up that much, probably it is a great time to buy. Our belief is that all PSU banks will come with a stellar set of numbers due to a combination of multiple factors including loan growth, asset recovery, asset quality improvement and a whole host of other such things and so buying into them will probably give the investors a bang for the buck.

In November, state-run lender Punjab National Bank had said the bank may cut excess SLR reserves to boost credit flow if required, while in September, Reserve Bank of India Governor Shaktikanta Das had said banks can augment systemic liquidity by drawing down on excess cash reserve ratio and SLR.

According to him, Rs 80 will act as a crucial make-or-break level for the stock, because if this is breached, it can see a swift run up to Rs 94-95 levels. Rout of Prabhudas Lilladher is equally bullish on the stock, and has a medium-term target of Rs 61-64, with positional target of Rs 80-85.

Nifty futures on the Singapore Exchange traded 15 points, or 0.08 per cent, lower at 18,656.50, signaling that Dalal Street was headed for a muted start on Thursday.

The Nifty Auto index was trading 0.64 per cent down at 12891.05.

The Nifty IT index was trading 0.75 per cent down at 30214.55.