Shares of Federal Bank breathe a sigh of relief after days. Here's why

Federal Bank, a private lender, saw a block deal of 10 lakh shares on its counter on Thursday when the entire sector is seeing buying after days of selling pressure.

Some of the most established brands in the banking sector are wallowing at 52 week lows, prompting buying at these levels. SBI, ICICI, PNB, BoB and Bank of India are some of the lenders showing a sharp correction in price over the last 5 sessions.

Federal Bank dipped to its lowest level in 13 months after hitting a high of 79.80 rupees earlier this month as investors worried about the rising incidence of non-performing assets in the sector, pressed the sell button.

But some buying is seen at present levels, pushing the bank higher.

Federal Bank rose 0.30 rupees, or 0.5 percent, to 59.65 rupees on the National Stock Exchange, where 19 lakh shares were traded compared with a 5-day average of 48.9 lakh shares.

Federal Bank's market capitalisation has fallen 5.7 percent in the past one year to 10,240 crore rupees. The stock trades at 1.3 times its book value of 47 rupees.

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