The big bank theory

Bankex moved up by 4.02% today. That's huge. The major gainers were BoI, BoB, Andhra Bank, Indus Ind Bank, ICICI Bank Limited, Vijaya Bank and UTI Bank (all over 5% gains and all in BSE A segment)

Of all these, I like Bank of Baroda. At a fwdPE of 8.36, BoB is undervalued. I estimate a 1yr earning forecast of 800 crs+ given the legacy and advancements made by the bank. The current dividend yield is 2.20%, which is slated to increase given the rise in profits.