Nifty PSU bank index down by 3%

Losing all the previous week gains, Nifty PSU Bank index was trading under pressure, dragged down primarily by the heavyweights like Bank of Baroda, PNB and SBI.

PSU banking stocks have seen significant run up till early February on the back of windfall gains made in the aftermath of demonetisation move, which helped all the capital-starved banks.

PSU Banks still trade at significant discount when compared to its private peers however, the rally witnessed in individual names have not been justified by the actual results delivered for the quarter ending December 31.

Therefore, the stocks have come under profit booking in the current markets. Overall, all the banks have delivered in terms of key metrics but the trouble seem to be far for many of them.

Nifty PSU Bank index is likely to consolidate at current levels after the stupendous rally, where it ran almost 10 per cent in the previous months.

Top Losers: -

Bank of Baroda- Rs 174.20 down 7.37%
Bank of India- Rs 130.95 down 2.28%
Oriental Bank- Rs 123.60 down 2.02%
Andhra Bank- Rs 55.50 down 1.86%
PNB- Rs 142.70 down 1.65%