Banking stocks surged on Monday, lifting the Nifty Bank index nearly 1,000 points, as easing geopolitical tensions following the Iran-US peace framework and a sharp decline in oil prices boosted market sentiment. Analysts said attractive valuations and improving macroeconomic conditions could help lenders lead the market rally.
The Nifty Bank index surged nearly 2% to cross the 57,800 mark on Monday, led by heavyweight HDFC Bank, whose shares climbed about 3% to Rs 1,793.50 apiece. The stock has now gained roughly 7% over the past two trading sessions.