A good day at the Stock Market for banks in weeks

After being hit by an economic slowdown for weeks now, the 10 stocks in Nifty Bank saw a great day. There was brisk buying today after investors ensured that the burden of bad loans will not escalate. This was a record high in the past two months which were not so rosy for banks.

Nifty Banks saw a 7% rise in stock prices with Nifty Private Bank Index and Nifty PSU Bank Index gaining 7.46% and 3.40% respectively.

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The top gainer was Axis Bank which sold at Rs 389, a 14% gain. This comes after reports state that it has initiated discussions with private equity group Carlyle for fund infusion. Kotak Mahindra Bank, on the other hand, soared 5.58% to reach Rs 1,217 after the private lender launched a qualified institutional placement offering to raise up to Rs 7,500 crore.

ICICI Bank, Bandhan Bank, Federal Bank, HDFC Bank and IndusInd Bank also rose up to 9 percent making it a great day for Nifty Banks.

“Banking stocks saw some institutional buying. A couple of foreign institutional investors (FIIs) were continuous sellers till about 4-5 days back. That selling has come to an end. Now, others are finding the prices attractive,” said Deepak Jasani of HDFC Securities.

Both Sensex and Nifty benefitted out of this surge and recorded a gain of 3.25% and 3.17% respectively.