Axis, AU Bank, PNB: Brokerages identify 5 bank stocks after RBI hikes rate

Technical analysts Ajit Mishra of Religare Broking and Hitesh Rathi of Angel One identified Axis Bank, Karnataka Bank, Punjab National Bank, AU Bank and City Union Bank from their chart setups after an RBI rate increase. On Wednesday, Axis Bank was at Rs 1,245.20, up 1.9% for the day, but down 1.5% over one month and 7.0% over three months, leaving it 11% below its 52 week high. Angel One traded at Rs 302.20, up 2.4% on the day, while down 0.6% over one month and 10.1% over three months, 15% below its 52 week high. The size and timing of the RBI move were not provided.

Higher policy rates can raise bank funding costs and reduce treasury bond values, while loan yields may reset later, putting margins under scrutiny. Axis Bank, Karnataka Bank, Punjab National Bank, AU Bank and City Union Bank are exposed through lending, deposits and investment books, though technical selections do not establish a fundamental advantage. The banks sector is down 4.4% in one month and 4.0% in three months. Capital markets, including Angel One, may feel the effect through trading activity and sentiment. The sector is down 3.5% over one month but up 0.2% over three months. Stable margins, deposit costs and resilient asset quality would confirm the reading. Faster funding pressure, weaker credit quality or failed chart levels would weaken it.