Back with a bang: Bankex outperforming Sensex, sharpest since 2009

Banking stocks are emerging as the biggest beneficiaries of the sharp shift in favor of cyclical sectors in India amid increasing optimism over an economic recovery. 

A 44 per cent surge since September 30 means a gauge of lenders is beating the benchmark S&P BSE Sensex by more than 20 percentage points this quarter — the most since 2009 — after three straight quarters of underperformance. 

The outperformance may continue till the risk-on trade persists, said Abhimanyu Sofat, head of research at IIFL Securities.