Bank of Maharashtra, IOB: Privatisation buzz sparks rally; should you buy?

The overall trend is optimistic till the Nifty PSU index defends the support of 2,000 mark on the closing basis

 Shares of public sector banks (PSBs) were on fire on Tuesday after a report by news agency Reuters said the government has shortlisted Bank of Maharashtra, Bank of India, Indian Overseas Bank, and the Central Bank of India for privatisation in fiscal year 2021-22.

Individually, Bank of Maharashtra and Indian Overseas Bank hit 20 per cent upper circuit at Rs 19.05 and Rs 13.10, respectively while Central Bank of India surged 16.8 per cent intra-day at Rs 16.30, and Bank of India rose 14.95 per cent at Rs 67.65. READ MORE

"With the majority of asset quality stress