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Below the Quote on banking sector by Mr. Amnish Agarwal - Co-Head - Institutional Equities, PL Capital

"The banking sector has witnessed strong buying interest, with the Bank Nifty crossing the 61,000 mark and moving closer to its previous record high. The rally is being supported by renewed foreign institutional inflows, improved sentiment towards domestic financials and broad-based participation across both public and private sector banks. Easing crude oil prices are also providing a favourable macroeconomic backdrop by reducing concerns around imported inflation and currency pressures. However, after the sharp recovery in banking stocks, some intermittent profit booking cannot be ruled out. Going forward, the sustainability of FII inflows, deposit mobilisation, credit growth and asset quality trends will remain key monitorables. We remain constructive on fundamentally strong banks, with a preference for lenders demonstrating healthy balance-sheet growth and sustainable earnings visibility."

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