Private banks like ICICI, HDFC and Axis Bank have been major drivers of Sensex rally

The Sensex has gained over 2200 points in the past 10 trading sessions. The rally was largely driven by banks after the RBI's rate cut. Of the 2212 points rise in Sensex, over 20%, or 450 points, have been contributed by HDFC alone; three banks — ICICI, HDFC Bank and Axis Bank — contributed nearly 610 points. BSE Bankex has gained 10%; the rally in banking stocks is likely to sustain on lower rate environment, say analysts.
Over the past couple of years, a rise in interest rates and a hobbled economy had led to a rise in stressed assets, a situation made worse by tepid loan growth due to lower capital expenditure by Indian companies.


The mid & small-cap stocks have underperformed the broader markets in the past 10 trading sessions. BSE Midcap index was up only 3%, while Smallcap rose by 1.5%.