SBI, HDFC Bank: Here is why bank stocks rallied up to 7% on Monday

Analysts opine that Monday's rally in banks is a sign of investors digesting decline in Covid-19 cases

Private banks and select public sector banks were the top index contributors at the bourses on Monday as investors rotated funds towards the sector as a sign of value-based buying. Eight of the top 10 contributors towards BSE barometer Sensex's gains today were from the banking and financial space including HDFC, HDFC Bank, ICICI Bank, Axis Bank, IndusInd Bank, SBI, Kotak Mahindra Bank, and Bajaj Finance.

Individually, shares of IndusInd Bank jumped nearly 8 per cent to Rs 960 apiece on the BSE in the intra-day trade before ending 7 per cent higher. Those of SBI, meanwhile, leaped 7 per