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Nifty PSU Bank index gains 5% after falling 30% in two months

SBI, Canara Bank, Allahabad Bank, Andhra Bank, BOI, BOB, OBC and Syndicate Bank were up 5%-7% on NSE.

SI Reporter  |  Mumbai 

Nifty PSU Bank index gain 5% after falling 30% in two months

Shares of public sector banks (PSBs) have rallied by up to 7% on the bourses after the benchmark indices gained more than 1% as investors remained positive about more stimulus from the European Central Bank (ECB).

State Bank of India (SBI), Canara Bank, Allahabad Bank, Andhra Bank, Bank of India, Bank of Baroda, Oriental Bank of Commerce and Syndicate Bank were up 5%-7% on the National Stock Exchange (NSE).

Union Bank of India, Dena Bank, Punjab National Bank (PNB), Uco Bank, Indian Bank, Indian Overseas Bank and IDBI Bank were up 3%-4%.

At 11:41 a.m. Nifty PSU Bank Index, the largest sectoral gainer, was up nearly 5% as compared to 1.8% gain in the Nifty 50 index. The PSU bank index hit an intra-day high 2,339, surging nearly 7% in past two trading sessions after falling 30% since November 20. The benchmark index fell 7% during the same period.

PNB, Canara Bank, IDI Bank, Allahabad Bank and Union Bank of India had fallen over 30%, while Bank of India, Bank of Baroda, Oriental Bank of Commerce and SBI fallen 29% each in past two months till January 20.

ECB President Mario Draghi yesterday, 21 January 2016, signaled in a conference that the governing council may provide more stimulus at its next meeting in March, noting that the outlook for inflation had weakened significantly. The ECB left its key interest rates unchanged after a monetary policy review.

Bank 20/11/2015 20/01/2016 % chg LTP % chg*
Bank of India 129.60 91.25 -29.59 100.60 10.25
IDBI Bank 84.45 55.25 -34.58 60.00 8.60
Canara Bank 268.70 171.35 -36.23 186.00 8.55
Bank of Baroda 171.90 121.15 -29.52 130.35 7.59
Union Bank 161.95 111.25 -31.31 119.60 7.51
Allahabad Bank 73.95 50.35 -31.91 53.90 7.05
Andhra Bank 66.80 49.85 -25.37 53.05 6.42
UCO Bank 46.65 35.60 -23.69 37.75 6.04
SBI 242.95 173.65 -28.52 183.95 5.93
Oriental Bank 147.55 104.30 -29.31 110.40 5.85
LTP : Last traded price on NSE in Rs at 11:41 a.m.
* % change over January 1, 2016

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First Published: Fri, January 22 2016. 11:48 IST