Banking stocks see strong gains, Bank Nifty rallies 11% in three days

The gains come after huge selling pressure and consequent under-performance of banking stocks since the start of March

Banking stocks have seen strong gains this week, with the Nifty Bank index surging nearly 11 per cent in the last three sessions (starting May 26). In comparison, the Nifty has risen just 5 per cent.

The gains follow huge selling pressure and the consequent under-performance of banking stocks since the beginning of March. The financial sector, banks, and non-banking financial companies (NBFCs) are seen as the worst-hit by the lockdown.

Therefore, the Nifty Bank had lost 41 per cent between February 28 and May 22, compared to a 19 per cent fall in the Nifty. Some individual bank stocks