Following the government’s announcement about the Rs.2.11 trillion recapitalisation plan for public sector banks, stocks of all the major state-owned banks have seen a steep surge on 25 October 2017.
On the NSE PSU bank index, the shares of the PSUs surged up to a maximum rise of 40%. Nifty PSU Bank index has seen the exchange of shares worth more than Rs.7,000 crore within an hour trade.
In the early hours of NSE trading, stocks of all the state-owned banks saw a massive surge. Punjab National Bank’s shares rose the maximum at 40% hitting a 52-week high of Rs.193.45. The largest lender, State Bank of India, saw a rise of 24.56% to hit Rs.316.95, the highest rate in the past 13 months.
Other PSUs, whose stocks surged in a similar manner include Bank of Baroda, which is up by 29%, Union Bank, Canara Bank, Bank of India, – all rose by 20%, and Oriental Bank of Commerce surged by 17%.
On the Nifty Bank index, SBI, PNB, ICICI, HDFC, Yes Bank, and Kotak Mahindra surged 935.65 points to reach the day’s highest of 25,157.8 points.
Similar scenario witnessed at BSE Sensex and NSE Nifty which gained all-time high points on the same day following the announcement of recapitalisation plan.
While the former stock market added 509.99 points to hit the lifetime high of 33,117.33 points, the latter market, Nifty, gained 132.85 points to hit the new high of 10,340.55 points. The stocks of all major banks surged in the opening trade. Sensex opened at 32,995.28 points by recording a rise of 387.94 points, whereas Nifty gained 113.45 points to open at 10,321.15 points.
In a major economy boost, the Finance Ministry of India, announced Rs.2.11 trillion recapitalisation plan for PSU banks to help them overcome the bad loans problem on Tuesday.
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