New Delhi: Bank stocks were back in the focus on Tuesdayy, rising up to 5.5 per cent on value buying amid a cut in the government's borrowing programme.
Shares of Punjab National Bank rose by 3.66 per cent, SBI by 3.04 per cent, Bank of Baroda 1.73 per cent, Indusind Bank 1.45 per cent, Kotak Mahindra Bank 1.25 per cent, ICICI Bank 0.91 per cent, Axis Bank 0.74 per cent and YES Bank 0.15 per cent on BSE. SBI was the top gainer in the Sensex pack.
Led by the gains in these stocks, the BSE bank index ended 0.93 per cent higher at 27,374.80.
Among others, Corporation Bank surged 5.46 per cent, Indian Bank 4.41 per cent, Dena Bank 3.50 per cent, Bank of India 3.24 per cent, Bank of Maharashtra 2.94 per cent, Allahabad Bank 1.34 per cent, Syndicate Bank 1.70 per cent and UCO Bank 0.70 per cent. Bank stocks had soared up to 10 per cent in the previous trading session also.
"Lower-than-expected borrowing programme for H1 FY19 at Rs 2.9 trillion or 48 per cent of the budgeted gross annual borrowing of Rs 6.1 tn provides respite to PSU bank stocks that have been reeling under tremendous pressure over the past three months," Emkay Global said in a report.
"Banking stocks witnessed strong buying interest," said Karthikraj Lakshmanan, Senior Fund Manager – Equities, BNP Paribas Mutual Fund.
In the broader market, the BSE benchmark index ended at 33,174.39, up 107.98 points.