PSU bank stocks recover early losses; end up to 10 percent higher
By PTI | Published: 14th March 2018 06:40 PM |
NEW DELHI: Bank stocks today bounced back from early losses to end with gains of up to 10 percent.
IDBI soared 10.22 percent, Oriental Bank of Commerce 6.08 percent, Union Bank of India 4.72 percent, Allahabad Bank 4.07 percent, Indian Bank 3.55 percent, Bank of Baroda 3.01 percent, Canara Bank 2.91 percent and State Bank of India 0.82 percent on BSE.
Shares of Punjab National Bank also rose by 1.38 percent after falling 4.74 percent during the day.
All these stocks had fallen in the morning trade but recovered later during the trading session.
"Market traded in a range bound manner due to mixed trend in global market, but recouped the losses as banking stocks outperformed due to improvement in financial market liquidity," said Vinod Nair, Head of Research, Geojit Financial Services Ltd.
"The PSU banking basket came back smartly and eventually managed to lift the traders' sentiments to reclaim the 10,400 mark," said Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking.
RBI yesterday barred banks from issuing guarantees in the form of letters of undertaking (LoU) as it clamped down on the import financing route used by fugitive jeweller Nirav Modi and his uncle Mehul Choksi for allegedly committing India's biggest bank fraud.