Bank of India, Union Bank of India and Indian Bank jumped over 4 percent each followed by Bank of Baroda, Central Bank of India, State Bank of India and J&K Bank.
Indian stock market has edged higher largely boosted by gains in PSU banks. Sensex is up 311.72 points or 0.63 percent at 50063.13, and the Nifty jumped 112.70 points or 0.77 percent at 14820.50.
Nifty PSU bank jumped over 3 percent and was trading at 2478.95 level at 10:32 hours. The spike was led by gains from Bank of India, Union Bank of India and Indian Bank which jumped over 4 percent each followed by Bank of Baroda, Central Bank of India, State Bank of India and J&K Bank.
Rajeev Srivastava, Chief Business Officer at Reliance Securities is of the view that PSU banks performed well as talk of privatisation of banks gain momentum.
“The broader strong outperformance continues in midcaps, especially the PSU baskets on the back of positive news flow of privatisation of PSU banks and PSU energy basket on expectations of bringing natural gas under the GST regime,” he said.
PSU banks have been in the spotlight ever since reports of privatisation of Indian Overseas Bank, Central Bank of India, Bank of Maharashtra and Bank of India.
The government has shortlisted four mid-sized state-run banks for privatisation, under a new push to sell state assets and shore up government revenues, news reports said quoting government sources.
Share price of Central Bank of India and Bank of Maharashtra hit upper circuit on NSE, jumping 5 percent and 10 percent respectively.
On the other hand, PNB, Indian Overseas Bank, Bank of Baroda, State Bank of India, Union Bank of India and Bank of India were some of the stocks that gained the most in terms of volumes.
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