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    BSE Bankex climbs 900 points intraday! What's fueling the rally

    Synopsis

    Sanjeev Sanyal, Principal Economic Advisor to the Government of India, on Friday said the time for demand revival in the economy is arriving.

    Bank
    Vinod Nair, Head of Research, Geojit Financial Services said, “In case of any economic recovery, the uptrend is usually initiated by the banking sector supported by an increase in credit growth.”
    Shares of banking majors extended their gains for the second straight day on Friday, after RBI Governor Shaktikanta Das said the banking system “continues to be sound and stable” through the coronavirus pandemic and the central bank "has not exhausted its ammunition, whether on rate cuts or other policy actions" to deal with the crisis.

    Sanjeev Sanyal, Principal Economic Advisor to the Government of India, on Friday said the time for demand revival in the economy is arriving.

    BSE Bankex gained 3.35 per cent, or 900 points, at 27,719 at around 12.05 pm. All the 10 components of the index traded in the green with Federal Bank gaining the most at 7.66 per cent.

    Vinod Nair, Head of Research, Geojit Financial Services said, “In case of any economic recovery, the uptrend is usually initiated by the banking sector supported by an increase in credit growth.”

    Shares of Axis Bank, IndusInd Bank, Bandhan Bank, RBL Bank, ICICI Bank, City Union Bank, State Bank of India, Kotak Mahindra Bank and HDFC Bank gained between 0.50 per cent and 7.50 per cent.

    Sanjeev Hota, Head of Research at Sharekhan said the fund raising by banks has been taken well by the market. "Besides, support from the government and RBI with some improvement in things at the macro level has also been aiding the banking counter in the recent days.”

    Analyst said the ongoing rally in the financial space should continue till the time there is no incremental negative news. “Liquidity is ample in the market. We like SBI, ICICI Bank and Kotak Mahindra Bank in the banking space,” Hota said.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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