Indian banking shares surge on government's $32.4 billion recapitalisation plan

Reuters  |  MUMBAI 

(Reuters) - Indian soared on Wednesday, sending indexes to record highs after the cabinet approved a $32.43 billion plan to recapitalise its state over the next two years, although bonds fell given the injection will be funded with debt.

State Bank of , the biggest lender, rose more than 20 percent, while Punjab National Bank , the second biggest state-run lender, surged more than 33 percent.

The benchmark NSE Nifty rose as much as 1.3 percent to a record high of 10,340.55, while the BSE Sensex climbed as much as 1.6 percent to a record high of 33,117.33.

Bonds fell, with the benchmark 10-year bond yield up 3 basis points to 6.81 percent from its previous close.

($1 = 65.0800 Indian rupees)

(Reporting by Devidutta Tripathy; Editing by Richard Borsuk)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, October 25 2017. 09:40 IST