Jammu & Kashmir Bank shares up 4.93 percent

Shares of Jammu & Kashmir Bank traded 4.93 percent up on Wednesday at 2:44 PM (IST), which reflects growing positivity in market sentiment about the bank. The counter opened today at Rs 19.15 triggering an immediate upper circuit.

There is a pattern to positivity, for, along with an upward movement in share prices on BSE and NSE, there has been a healthy jump in the daily average in terms of trade volume as well.

“We need to see this upward jump as an outcome of sustained investor interest in the scrip. The strong average daily volume figures from the last few months shows a long term build-up in the share. After bottoming out at Rs 11.00 in the first week of April 2020, the share has consistently rallied almost 80 percent since then. With over 68 percent ownership with Government of J&K, investors also find it safe to park their investments in this scrip”, said a market observer.

“The recent balance sheet figures depicting banks robust NPA coverage and gross profits have been taken well by the markets”, he added.

Pertinently, investors’ appetite for J&K Bank has been showing a positive trajectory with a daily average volume of approx 79 Lakh shares for the preceding month. The stock of the bank quoted a 52-week high of Rs 53.30 and a 52-week low of Rs 11.00.

Meanwhile, Reserve Bank of India, on Tuesday extended the term of bank’s CMD R K Chhibber further by a period of three months with effect from 10th July 2020.