Options traders show optimism for Indian banks amid low NSE Nifty Bank Index volatility hedging costs.

Options traders are showing renewed optimism towards Indian banks, as the cost of hedging against volatility in the NSE Nifty Bank Index is at its lowest since January. Despite underperformance due to slow deposit growth and regulatory concerns, strong retail loan demand and robust earnings from banks like HDFC and ICICI are shifting trader focus toward private banks. The Nifty 50 has risen 15% this year, whereas the banking index is up only 6%. Analysts favor ICICI, Axis, and State Bank of India.

September 11, 2024
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