Markets closed higher; PSU Bank stocks outperform

Markets witnessed a lacklustre day of trade with the benchmark index Nifty traded with a positive bias. Nifty index outperformed the Bank Nifty index by ~0.1% with both the indices closing with marginal gains.

Nifty PSU Bank index was the biggest outperformer, closing ~7% higher led by a strong rally in the stocks like SBI, PNB, BOB & Canara Bank.

Nifty Midcap100 index closed on a flat note, gaining ~0.1%. Market breadth ended in the favour of the advances with the advance/decline ratio closing at 1:1x. Nifty and Bank Nifty index saw an addition of long positions during the day.

On the options front (December 10, 2020 expiry), across the board option writing positions were formed in Nifty put options as the index trended higher. India Vix index closed at 18.5, up 3%.