PSU banks rally; Oriental Bank, Syndicate Bank up over 5% in subdued market

Union Bank of India, Allahabad Bank, Bank of India, Canara Bank, Punjab National Bank and Bank of Baroda were up 2 per cent to 4 per cent.

Shares of public sector banks (PSBs) were in focus in otherwise subdued market, with Nifty PSU Bank index gaining 2 per cent on the National Stock Exchange (NSE), as bond yields fell ahead of Reserve Bank of India (RBI's) monetary policy decision.

The 10-year government bond yield ended below 7 per cent for the first time since November 2017, which can provide cushion for treasury income in Q1FY20.

Among the individual stocks, Oriental Bank of Commerce and Syndicate Bank were up more than 5 per cent each on the NSE. Union Bank of India, Allahabad Bank, Bank of