Banking stocks lead gainers

Banking stocks lead the gainers on the BSE today, just like yesterday. The top gainers on the BSE currently are Indian Bank, Corporation Bank, Dena Bank, IDFC and the only non-bank stocks – HDIL.

This panache for banks, especially PSU banks has gone up post the good performance reported by Bank of India and Bank of Baroda. Suddenly, post these two, the perception is that PSU banks are totally out-of-the woods and traders are rushing in to buy. But at this stage caution is advised as a momentum is created on the bank stocks and this will remain for the next 3 days or so. It is pure index management and technical factors which are pushing up the bank stocks. Be wary.