A sneak review of Banking stocks' today's performance

Markets are showing signs of recovery after correcting heavily in previous few trading sessions with several commodity stocks rallying on bourses. Banking sector is another sector which is doing relatively better on bourses on Thursday. 

The Bank Nifty, however, is trading flat to negative, with the index trading at 19116 levels. The index is down by 0.13 per cent on an intraday basis.

Stocks like SBI, Bank of Baroda , ICICI Bank, Federal Bank, Axis Bank and Kotak Mahindra Bank are all up by anywhere between 0.3 per cent to 1.5 per cent . Bank of Baroda is the top gainer amongst the banks.

Banking Stocks especially PSU banks are expected to gain from the demonetisation initiative taken by the current government. The much-required liquidity is expected to be pumped into the banking system in the form of deposits with SBI alone having reported deposits in excess of 1.4 lac crore. 

Experts have argued that if the deposits will not be there in the system for longer run, nevertheless the huge deposits coming into the banking system is a big positive in the short run.