Mumbai: There is traction in PSU bank stocks on better earnings expectations from brokerages on historically high loan disbursements. Since most PSU bank stocks barring the leaders have underperformed during the current bull market, investors are trying to cover their short positions.
The Nifty PSU Bank Index gained 3.08 per cent on Tuesday compared to Nifty-50’s gain of 0.26 per cent. The Nifty Bank was up 0.59 per cent.
All but one stocks on the Nifty PSU Bank gained on Tuesday, gaining between 1.5 per cent to 6 per cent and even more.
"Recent price moves broadly capture the optimism,We expect managements across banks and non-banks to provide optimistic commentaries," Japanese brokerage firm Nomura said in its second quarter result preview.