Bank shares surge on government's USD 32.4 billion recapitalisation plan
25 Oct 2017 10:27 AM IST
SBI shares rose more than 20 per cent, while Punjab National Bank shares surged more than 33 per cent.
Shares of Dixon Technologies (India) Ltd rose as much as 70 percent on their trading debut on Monday. (Representational Image)
Mumbai: Indian banking shares soared on Wednesday, sending indexes to record highs after the cabinet approved a $32.43 billion 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 per cent 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.
( Source : reuters )
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