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VOL. 9, ISSUE 2 (2024)
How the Indian banking share market performs
Authors
Dr. Pushpa Dewangan
Abstract
The crucial role that the banking industry plays in the nation's
economic development and its reaction to changes in macroeconomic conditions
and policy is reflected in the performance of the Indian banking share market.
Banking stocks have become important determinants of the equity market
throughout time, impacted by market sentiment, reforms, and economic cycles.
Initiatives for financial inclusion, digital transformation, and rising credit
demand have all contributed to the impressive performance of Indian banking
equities. Owing to superior asset quality, customer-focused tactics, and
technological adoption, private sector banks like HDFC Bank and ICICI Bank have
continuously outperformed. After battling with large non-performing assets
(NPAs), public sector banks (PSBs) have improved as a result of bad loan
settlements and ecapitalization. Banking stocks first
fell as a result of the COVID-19 epidemic because of concerns about loan
defaults and a slowing economy. However, the industry was revived by the
post-pandemic recovery, which was aided by the Reserve Bank of India's (RBI)
lenient policies and fiscal stimulus. Global monetary tightening, inflationary
pressures, and the Russia-Ukraine crisis all contributed to short-term
volatility but did not stop the sector's long-term development trajectory.
Indian banks have proven resilient in the face of difficulties including rising
interest rates and unstable geopolitical conditions. The industry continues to
draw in both local and global investors because to its solid foundations,
enhanced balance sheets, and emphasis on innovation. In conclusion, the
combination of solid economic fundamentals, sectoral reforms, and growing
investor confidence has produced outstanding performance from the Indian
banking share market.
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Pages:42-45
How to cite this article:
Dr. Pushpa Dewangan "How the Indian banking share market performs". International Journal of Academic Research and Development, Vol 9, Issue 2, 2024, Pages 42-45
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