New Delhi, Aug. 26 -- PSU bank stocks witnessed healthy buying interest in morning deals on Wednesday, 26 August, driving their sectoral index, the Nifty PSU Bank, higher by nearly 2% despite cautious market sentiment.

Nifty PSU Bank index rose by 1.8% in morning trade, with stocks such as Bank of Maharashtra, Bank of India, Canara Bank, Punjab National Bank, and SBI, jumping between 1% to 6%.

The PSU banking stocks are not witnessing a sudden spurt. In fact, the Nifty PSU Bank index has risen by 4% this month so far, compared to a 0.60% rise in the Nifty Private Bank index, and a flat with negative bias Nifty 50.

The rise in PSU bank stocks can largely be attributed to healthy Q1FY27 results.

Despite a challenging macro environment d...