Even as the banking sector is facing another crises due to the Covid-19 pandemic, the Bank Nifty index has managed to gain more than 10 per cent over two days- Wednesday and Thursday's half day trading session so far.
The billion dollar qualified institutional placement issue of country's second largest private bank, Kotak Mahindra Bank was also subscribed three times over in minutes of opening of Thursday.
Short-sellers, who were hanging on to the crisis story, were caught on the wrong foot. The rise in positive sentiments could continue till short positions are wound up, brokers said.
The Kotak Bank QIP of Rs 7500 crore was oversubscribed more than three times, brokers in Mumbai said. Apart from key large mutual funds, global long-only funds such as Oppenheimer, GIC, CPPIB and Capital International have participated.
IndusInd Bank, Kotak Bank, ICICI Bank and HDFC Bank were among the largest volume generators on Thursday on Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The bank shares were up in the range of 5-10 per cent. After 3 per cent rise on Wednesday, the Sensex and Nifty index had gained another 1.5 per cent on Thursday in the trading session half way.
Stock markets had witnessed a sharp fall in the month of May since the Government announced the Rs 20 lakh crore stimulus package nearly 10 days ago. This was largely on the back of foreign portfolio investor selling.
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Published on
May 28, 2020
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