Bank stocks in demand, jump up to 8 pc on hopes of capital support

Bank stocks on Monday gained up to 8 per cent on hopes of capital support to public sector lenders and stimulus measures for the economy. "The recovery was broad-based wherein noticeable rebound was seen in auto, banking and financial stocks after investors' hopes increased on the likely announcement of an additional stimulus package by the government," Ajit Mishra, VP - Research, Religare Broking Ltd said..

Bank stocks on Monday gained up to 8 per cent on hopes of capital support to public sector lenders and stimulus measures for the economy. Shares of IndusInd Bank, the top gainer in the Sensex pack, rose by 7.85 per cent, Bandhan Bank 5.83 per cent, Axis Bank 5.83 per cent, Federal Bank 5.76 per cent, RBL Bank 5.24 per cent, ICICI Bank 4.13 per cent, SBI 2.80 per cent, Kotak Mahindra Bank 2.37 per cent, City Union Bank 1.05 per cent, and HDFC Bank 0.96 per cent.

The BSE Bank index gained 3.38 per cent. Among public sector lenders, Bank of India jumped 4.47 per cent, Canara Bank 4.42 per cent, Bank of Baroda 4.21 per cent and PNB rose by 3.79 per cent.

"Key indices ended high as bulls led the charge backed by financials and well supported by auto and pharma. Expectations of stimulus coupled with capital support to state-run banks fuelled the rally in late afternoon trade," said S Ranganathan, Head of Research at LKP Securities.   The BSE Sensex settled 592.97 points or 1.59 per cent higher at 37,981.63. "The recovery was broad-based wherein noticeable rebound was seen in auto, banking and financial stocks after investors' hopes increased on the likely announcement of an additional stimulus package by the government," Ajit Mishra, VP - Research, Religare Broking Ltd said..