Bank Nifty Soars to New High, Rises 5.5%

Banking stocks were among the biggest gainers today in today's rally with the NSE-sub index rising over 5 per cent to a new high.

Bank Nifty rose to an all-time high of 13,814 outperforming broader markets which were up nearly 3 per cent. In the past seven months, Bank Nifty rose over 30 per cent.

Despite the Sensex and Nifty touching all-time highs in the pre-election rally, banking stocks were initially among the laggards over asset quality concerns amid an economic slowdown.

Among banking stocks, ICICI Bank rose nearly 7 per cent, HDFC Bank 5.4 per cent while Yes Bank rose over 9 per cent.

Banks are seen a proxy to economy and brokerage firm CLSA today said a stronger government will help in re-rating of banks. The Asia Pacific-focussed brokerage said ICICI, Axis Bank, IndusInd Bank and SBI are the best play in the banking space.

Morningstar in a report said that mutual fund managers have increased their exposure to financial stocks in the recent quarter, with ICICI Bank as their top favourites.