Banking stocks surge; ICICI Bank up 6 per cent

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 Banking stocks surge; ICICI Bank up 6 per cent
ICICI Bank: Quotes, News
BSE 277.50BSE Quote12.5 (4.50%)
NSE 277.60NSE Quote12.55 (4.52%)
HDFC Bank: Quotes, News
BSE 1255.35BSE Quote3.2 (0.25%)
NSE 1255.50NSE Quote2.85 (0.23%)
Banking stocks rallied in trade today with stocks like ICICI Bank jumping 6 per cent, while HDFC Bank rallied 4 per cent.

PSU Banking stocks were also the stars in trade today. An exit poll reading which shows a strong showing for the BJP in almost all of the 4 states going to polls, sparked a fresh rally in these stocks.

Almost all of the PSU banking stocks gained in trade with Canara Bank, Union Bank and Bank of Baroda leading the way. All of these stocks were up more then 3 per cent in trade.

There are hopes that a Narendra Modi led government would take charge at the centre, following the BJP's strong showing in four of the four states, according to exit polls.

Analysts are of the opinion that the investment cycle would kick start once again, if Modi is anointed the Prime Minister, which should help banks, particularly the PSU banks.

Most of these banks have not been doing too well on account of the sudden slowdown in the economy. They are now saddled with huge non performing assets, though marketmen believe things could have bottomed out for the sector.

Valuations are also attractive for PSU banks, since most of them are quoting at half their book values.

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