Banking Shares Surge On Centre's 2.11 Lakh Crore Recapitalisation Plan
State Bank of India shares rose more than 20 per cent, while Punjab National Bank shares surged more than 33 per cent
Thomson Reuters | Last Updated: October 25, 2017 09:58 (IST) Thomson Reuters
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NSE Nifty rose as much as 1.3 per cent to a record high of 10,340.55
Mumbai: Indian banking shares soared on Wednesday, sending indexes to record highs after the cabinet approved a Rs 2.11 lakh crore plan to recapitalise its state banks over the next two years, although bonds fell given the injection will be funded with debt.
State Bank of India, the biggest lender, rose more than 20 per cent, while Punjab National Bank, the second biggest state-run lender, surged more than 33 per cent.
The benchmark NSE Nifty rose as much as 1.3 per cent 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 per cent from its previous close.
