PSU banking stocks rally on Monday

PSU banking stocks rally on Monday

New Delhi, Sep 18 (IANS) Nifty PSU banks were top gainers on Monday among sectoral indices with gains of 3.39 per cent.

Lower deposit-to-credit ratio, focusing more on high-yield products, and introducing technology into PUS banks would all help the sector's banks attracting more investors by boosting profitability and fostering development, says Vaibhav Vidwani, Research Analyst, Bonanza Portfolio.

Domestic equities opened on a weak note amid cautiousness in global markets. 

Nifty remained in negative territory throughout the session to close with a loss of 59 points at 20,133 levels, said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

Sectorally, it was a mixed bag with buying seen in PSU Banks, Auto, Consumer Durables, and FMCG. 

A rally was seen in PSU Banking stocks after news about the nation's sovereign debt prospects was added to global indices, he added.

This week markets would take cues from their global peers as several central banks including US Fed would hold policy meetings. 

Market is showing strength and is sustaining above 20k levels. Overall, we expect the market to gradually inch upwards with minor profit booking at intervals. Globally, Investors would track European inflation data and US housing stats that will be released on Tuesday, he added.