Public sector banks gain ahead of RBI's policy meet

PSU banks quietly gained on a very volatile day of trade on Tuesday. Nifty PSU Bank index closed at 3,832.30 points, up by 51.80 points or 1.37 per cent, while Nifty Bank was at 25,124.85 points, up 49.75 points or 0.20 per cent.

The public sector bank stocks were led by SBI which was also the top gainer on Nifty50. The largest bank of India, SBI closed at Rs. 320.40 per share, up by 2.17 per cent.

The banking sector is awaiting directions from the two-day Monetary Policy Committee (MPC) meeting which is ongoing and will be followed by the RBI's interest rates review on Wednesday. The public sector banks are also looking forward to some announcements or details regarding government's recapitalization plan on Wednesday.

Among PSBs, Canara Bank closed at Rs. 374.00 per share, up by 1.84 per cent, Union Bank closed at Rs. 161.95, up 1.82 per cent, Punjab National Bank close at Rs. 176.15, up 1.70 per cent, Indian Bank was at Rs. 388.00, up 1.02 per cent. Other PSBs including Oriental Bank of Commerce, Syndicate Bank and Allahabad Bank were up 0.94, 0.75 and 0.34 per cent, respectively. While, Bank of Baroda, Bank of India, Andhra Bank and IDBI were trading in the red territory.