Nifty PSU Bank logs biggest weekly surge in 7 months; PNB, Bank of India, Bank of Baroda among top performers

What happened: The Nifty PSU Bank index rose 8% for the week, its biggest weekly gain in seven months and a third straight weekly advance. PNB, Bank of India and Bank of Baroda were among top performers. Key numbers: Index up 8% for the week and 15% over three weeks, at its highest Why it matters: The rally was supported by better-than-expected Q2 results, expanding credit demand and improved market sentiment. Kotak Institutional Equities said the sector is positioned to benefit from the changing interest rate environment, though improvement depends on funding costs and the rate cycle.

The Nifty PSU Bank index rose 8% for the week, its biggest weekly gain in seven months and a third straight weekly advance. PNB, Bank of India and Bank of Baroda were among top performers.

The rally was supported by better-than-expected Q2 results, expanding credit demand and improved market sentiment. Kotak Institutional Equities said the sector is positioned to benefit from the changing interest rate environment, though improvement depends on funding costs and the rate cycle.