Business Standard

Banking stocks rally on better earnings outlook; room seen for upside

Hopes of improvement in asset quality, better credit growth and lower valuations are supporting factors


Banking stocks have been laggards at the bourses in the market rally due to expectations of severe asset quality pressure led by Covid-19-induced disruptions.

Shreepad S AuteSamie Modak
On Friday, the BSE Bankex ended with gains of about 4 per cent, the most since March 13. This was also the highest close for the index since that day.

The benchmark Sensex rose 0.9 per cent, or 353 points, to end at 39467.31, its highest close since February 27, The Nifty50 index added 0.83 per cent to end at 11,655. Both indices logged their sixth consecutive day of gain.

Four of the five top Sensex gainers were banking stocks, led by IndusInd Bank, which rose 8.4 per cent, followed by Axis Bank and ICICI Bank, which rose 7.7 per cent and

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Aug 28 2020 | 7:15 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to