Bank stocks see huge demand, surge up to 8.5 pc

Bank stocks were in huge demand today, surging up to 8.5 per cent, in-tandem with an overall bullish broader market sentiment.

Among blue chips, SBI soared 5.62 per cent, Bank of Baroda 5.23 per cent, ICICI Bank 4.08 per cent, PNB 2.02 per cent, AXIS Bank 1.84 per cent and HDFC Bank 0.72 per cent on the BSE.

Also, Bank of India zoomed 8.46 per cent, Canara Bank 7.74 per cent, Indian Bank 7.01 per cent, Allahabad Bank 3.74 per cent, Andhra Bank 2.82 per cent and Indian Overseas Bank 2.26 per cent.

Shares of Dhanlaxmi Bank rose by 2.13 per cent, Corporation Bank 2.06 per cent, Federal Bank 1.38 per cent, United Bank of India 0.72 per cent, Bank of Maharashtra 0.41 per cent and City Union Bank 0.21 per cent on the BSE.

The BSE bank index gained 1.43 per cent to end at 30,426.14.

"Better Q1 FY19 results from heavy weights and outperformance of PSU banks coupled with appreciation in rupee supported the main indices to touch another high," Vinod Nair, Head of Research, Geojit Financial Services Ltd said.

Public sector lender Canara Bank yesterday reported a 11.87 per cent rise in its net profit to Rs 281.49 crore in the first quarter ended June 30.

The government's plan to infuse Rs 11,336 crore in five state-owned banks, including PNB, is credit positive and will help these lenders meet the regulatory requirement, according to Moodys.

The 30-share BSE Sensex surpassed the 37,000-mark for the first time in history to touch a high of 37,061.62 in intra-day.

It finally closed the day 126.41 points higher at 36,984.64.