Shares of several beaten-down banking stocks skyrocketed on Thursday amid the expiry of derivatives contracts for the March series. Shares of IndusInd Bank soared 45 per cent to end at Rs 437. The private sector lender is among the worst-hit in the recent carnage, with its stock coming off 85 per cent from its highs.
Similarly, shares of Bandhan Bank rose nearly 40 per cent to end at Rs 216. Before Thursday’s gain, Bandhan Bank, too, had seen its share price drop by 70 per cent.
While these two counters had fallen the most, several other banking and financial stocks posted huge declines on worries that the sudden stop to economic activities would lead to an increase in bad loans and hurt growth prospects.
Derivatives analysts say traders had aggressively built short positions in many financial stocks during the market fall and covering of these positions amid improvement in market sentiment led to a spurt in prices on Thursday.