PSU banks surge. Don't rush to buy the shares on a bounce, caution analysts

Investors who do not own these stocks, it is advisable to remain on the sidelines for now, they suggest

Shares of public sector banks (PSBs) bounced back on Tuesday with Bank of India surging 14 per cent on reports of recovery of Rs 70 billion in non-performing assets (NPAs). The rub-off effect was seen across the board as Nifty PSU Bank index, the largest gainer among sectoral indices, gained five per cent compared to around 0.35 per cent rise in the Nifty 50 index in intra-day deals.

Among individual stocks, Bank of Baroda, Andhra Bank, Union Bank of India, Oriental Bank of Commerce, Canara Bank, Allahabad Bank and Syndicate Bank moved up in the range of eight per cent