In India’s buzzing stock market, banking stocks often steal the spotlight. Among the Public Sector Undertaking (PSU) banks, Canara Bank has consistently attracted both retail investors and institutional giants. With its deep-rooted legacy, expanding digital initiatives, and stable financials, Canara Bank is showing interesting signals on the trading charts. In this article, we decode its current market position, explore recent trends, and understand how global events and domestic cues are influencing investor sentiment.
A Big Move in Q4: Rekha Jhunjhunwala’s Fresh Investment Strategy
In a striking move that’s caught the attention of Dalal Street, ace investor Rekha Jhunjhunwala has picked up a significant stake in Canara Bank, a reputed public sector bank with a stock price comfortably under ₹100. According to the latest Trendlyne data, she bought a whopping 13.24 crore shares during the January to March 2025 quarter, which amounts to a 1.5% stake in the bank.
The total value of this high-conviction bet stands at ₹1,199.1 crore, indicating strong faith in Canara Bank’s long-term potential. What’s more interesting? This isn’t her first tryst with the stock.
A Return to an Old Favourite: Why Canara Bank?
Rekha Jhunjhunwala had previously held a position in Canara Bank during Q2 FY2025, with a 1.42% stake as of September 2024. However, she exited in the December 2024 quarter. Her return now suggests a fresh outlook on the bank’s fundamentals and future prospects.
Canara Bank, one of India’s top public sector lenders, has been steadily improving its balance sheet, showing better asset quality and capital adequacy ratios. These developments might have played a role in Jhunjhunwala’s renewed interest. Investors often look for cues from seasoned market players, and her latest portfolio addition hints at a bullish stance on India’s banking sector, especially the PSU segment.
Market Sentiment and Share Performance: What the Numbers Say
On Friday, April 11, Canara Bank’s stock closed positively at ₹90.53 on NSE, suggesting positive investor sentiment. The price being under ₹100 makes it attractive for retail and institutional investors alike. Given the current market environment, with banking and financial services expected to benefit from improving credit demand and strong macro fundamentals, Canara Bank stands out as a value pick.
Rekha Jhunjhunwala’s strategic re-entry can boost confidence among retail investors, many of whom track marquee investors for inspiration. However, it’s important to analyse the stock’s fundamentals and not just follow blindly.
Canara Bank Share Price Today: A Glance at Current Market Position
As of mid-April 2025, Canara Bank shares are hovering around ₹90.54, showing a steady uptrend from its recent support near ₹85-₹82. If we rewind the chart a bit, Canara Bank was trading in the ₹120-125 range just last year. This sharp rally highlights strong investor confidence backed by improving earnings and solid credit growth.
Technically, the stock is trading above its 50-day and 200-day moving averages, indicating bullish sentiment. Moreover, the Relative Strength Index (RSI) has maintained levels around 55, which suggests room for upward movement. Traders are closely watching the ₹97 resistance zone, and if broken, the next target could be in the ₹115–₹125 range for near term.
What Should Retail Investors Do?
Investing in public sector banks can be rewarding, but it comes with its own set of risks. Factors like interest rate changes, asset quality, and government policies can impact stock performance. For those eyeing Canara Bank now, it would be wise to study the bank’s recent quarterly results, NPA ratios, and credit growth trends.
Rekha Jhunjhunwala’s move indicates a vote of confidence, but always remember—your investment decisions should be based on sound research and personal financial goals.
Final Thoughts:
With its improving fundamentals, strong institutional backing, and optimistic outlook on India’s banking sector, Canara Bank is well-positioned for a strong run in 2025. Additionally, the government’s push for PSU bank privatization, although Canara Bank is not currently in the disinvestment list, adds speculative momentum. Investors are also eyeing Canara’s digital transformation, with significant upgrades in mobile banking, AI-based customer service, and fintech collaborations.
Keep an eye on quarterly results and macro indicators, and consider this PSU gem while building a diversified financial portfolio.
Disclaimer: The views and investment insights provided here are based on publicly available information and do not constitute financial advice. Readers are advised to conduct their own research or consult certified financial experts before making investment decisions.
