Investors bet big on PSU banking stocks which surged in trade as investors bought heavily on hopes that Narendra Modi led NDA would revive the PSU banks with capital infusion and economic growth.
Canara Bank rallied 14 per cent, while Oriental Bank gained 11 per cent, Union Bank was up 10 per cent and Andhra Bank was up 13 per cent. Almost all of the other PSU banking stocks like IDBI Bank, Syndicate Bank, Bank of India and IOB were up between 5-10 per cent.
PSU banking stocks have been witnessing frantic activity in the last few weeks on hopes of a Narendra Modi led government at the centre. With results now confirming that there would indeed be a Narendra Modi led government at the centre, investors bought heavily into these stocks.
There are hopes that economic growth likely to be pushed by the Narendra Modi led government would pull down non performing assets and help improve margins of PSU banks.