Domestic Banks are having the last laugh

Banking futures showed an uptrend as traders bought into beaten down valuations primarily in the public sector banking space. The Bank Nifty was up 0.7 percent at 18,638 points by mid-afternoon trade.

All 22 bank futures showed positive gains between 0.1 percent and 4 percent. Their Open Interest position, which denotes trader interest in the stocks, rose between 0.5 percent and 9.7 percent for individual futures. Only three banking futures -- Andhra Bank, Oriental Bank of Commerce and UCO Bank -- showed a fall in Open Interest, which was minimal.

Mid-sized Karnataka Bank was the top gainer with a 4 percent jump in the futures and options segment. It was the only banking future where volumes rose 21 percent over the previous day.

Deliveries are also rising substantially in the PSU bank segment: PNB, Bank of India, Andhra Bank and Allahabad Bank showed a sharp spurt in delivery volumes.


(Image credits: Indiatimes)