Midcap state-run banks gain; investors trim short positions

Reuters Market Eye - Shares of midcap state-run banks gain as investors reduce short positions in futures after recent falls, dealers say.

IDBI Bank saw a reduction of 220,000 short positions in the futures segment, while Indian Overseas Bank (IOB) saw 162,000 and Andhra Bank 108,000 positions cut in July futures contracts as of early afternoon.

IDBI shares are up 1.6 percent and IOB gains 0.4 percent, while Andhra Bank rises 0.3 percent.

"We are seeing short-covering in some banking names after recent under-performance," said Anuj Choksey, head of institutional sales at K R Choksey Securities.

(Reporting by Abhishek Vishnoi)