BSE Sensex gained as much as 509.99 points to hit the all-time high of 33,117.33 points. (Image: Wikimedia Commons)
Indian stock markets closed at lifetime highs on Wednesday led by the rally in PSU bank stocks after Narendra Modi government announced a mega plan of Rs 2.11 lakh crore to recapitalise state-run lenders. The total turnover on NSE Nifty clocked Rs 25,922.11 crore while Nifty Bank saw trades worth Rs 24,450.68 crore. BSE Sensex gained as much as 509.99 points to hit the all-time high of 33,117.33 points while NSE Nifty added 132.85 points to mark the record high of 10,340.55 points. Shares of State Bank of India, Punjab National Bank rallied up to 48% while HDFC, HDFC Bank, and Kotak Mahindra Bank lost up to 5%. The benchmark Sensex rose 435.16 points or 1.33% to close at 33,042.5 points and NSE Nifty jumped 87.65 points or 0.86% to finish at 10,295.35 points.
Shares of India’s largest bank by asset size and loan book — State Bank of India — jumped as much as 29.93% to hit the 52-week high of Rs 328.05 before closing up 26.92% at Rs 322.95. Punjab National Bank was the biggest gainers among the banking stocks, rose 49.45% to hit the 52-week high of Rs 206.55 before closing 48.88% higher at Rs 205.75, followed by Bank of Baroda – up 28.54%, Union Bank of India – up 34.32%, Canara Bank – up 38.76%, Bank of India – up 33.48%, Oriental Bank of Commerce – up 25.4%, Andhra Bank – up 18.72%, Allahabad Bank up 22.38%, IDBI Bank, Indian Bank, and Syndicate Bank gained up to 19.6%.
The Nifty Bank index suffered the contrary trade between the gainers — SBI, PNB, ICICI Bank, Canara Bank, Bank of Baroda and losers — HDFC Bank, Kotak Mahindra Bank, Yes Bank, IndusInd Bank, The Federal Bank. The index advanced 935.65 points to hit the day’s high of 25,157.8 points but failed to breach the record high of 25,198.8 points, closed up 3.46% at 25,057.8 points. The Nifty PSU Bank index soared the most since the time it was constituted. The index gained 916.45 points or 29.63% to hit the all-time high of 3,835.9 points.
Shares of Kotak Mahindra Bank settled down 4.66% at 1,016 after The fourth-largest private sector bank reported a rise of 22.26% on-year in the standalone net profit in July-September quarter to Rs 994.31, led by higher interest income. Bank’s gross NPAs as a percentage of total loans and advances improved marginally to 2.47% versus to 2.49% a year ago.
In a major announcement, Finance Minister Arun Jaitley on Tuesday said that the cabinet has approved Rs 1.35 lakh crore for India’s ailing public banking system from recapitalisation bonds, of the total approved 2.11 lakh crore. Recap Bonds are used as payment for the shares bought by the government to ailing banks in a bid to raise their capitals. Earlier in the 90s, the then government had issued recap bonds to borrow from the banks without allowing fiscal deficit to expand.
