Short covering in PSU scrips
Analysts said PSU banks looked oversold and there was short covering, with the market sentiment turning positive as the exit poll came as a surprise.
Mumbai: Shares of public sector banks rallied the most, with gains of 5 to 13 per cent, on exit poll predicting the NDA getting a majority.
The market perception that an NDA victory would mean better fiscal management and no farm loan waivers, both positive for the public sector banks, seems to have boosted sentiments towards oversold PSU banks.
Analysts said PSU banks looked oversold and there was short covering, with the market sentiment turning positive as the exit poll came as a surprise.
The Nifty PSU Bank Index was up 7.88 per cent, BSE Bankex and Nifty Bank indices gained 4.68 per cent and 4.45 per cent, respectively as private banks also rallied.
The gainers among the top public sector banks included Bank of India (10.65 per cent), Bank of Baroda (9.76 per cent), SBI (8.32 per cent), Canara Bank (8.21 per cent) and PNB (6.83 per cent).
The other big gainers were Bank of Maharashtra (13.38 per cent), IDBI Bank (9.16 per cent), Allahabad Bank (8.80 per cent), Syndicate Bank (8.86 per cent), Oriental Bank of Commerce (6.50 per cent), Indian Bank (7.87 per cent) and Andhra Bank (5.14 per cent).