UBI shares hit a six months high. Know why

Futures of Union Bank of India hit their highest in six months as the enthusiasm for beaten down PSU lenders remained unabated for the 4th day in a row.

Union Bank futures surged 4.9 percent, or 9.15 rupees, to 195.20 rupees, their highest level since Feb 4th, on the National Stock Exchange. Futures gained for the 4th day. Their Open Interest surged the maximum 43.3 percent for a single stock. A build up of long positions was seen on the futures, whose contract volumes were 15 percent higher by 1.15 pm over the previous day.

PSU banks have been in favour after the government said it would recapitalise them to the extent of 70,000 crore rupees over next four years. Moreover, data showed the pace of growth of fresh non-performing loans declined in the past quarter compared with the sequential three months before April-June.

Meanwhile, more than 1.28 crore shares of Union Bank were traded on the NSE compared with a 5-day average of 75 lakh shares.

Image credit: Indiatimes