PSU Bank stocks rise as Jaitley’s announcement of Rs 2.11 lakh cr bank recapitalization plan

The government has announced motivated plans for bank capitalization to enhance the economy, stimulate investments and generation of jobs, together with a highway construction project. Stocks of PSU banks picked momentum on Wednesday following govt’s plan to recapitalize the lenders with a huge capital size of Rs 2.11 lakh crore.

SBI rallied 19.57% to Rs 304.30, Union Bank of India up 20.37% to Rs. 158.10, PNB 29.94% to Rs. 179.45, OBC up 15.44% to Rs. 137.20 and Bank of Baroda at 23.09% to Rs. 176.20.

FM  Arun Jaitley on 24 October 2017, said that the cabinet has sanctioned Rs. 1.35 lakh cr for India’s public banking system from recap bonds, of the total approved 2.11 lakh cr. The Bonds are used as payment for the shares bought by the govt for those banks which are below par in a bid to raise their capitals. 

Oil prices rise on Middle East Worries

Oil prices rose on Friday, as tumult in the Middle East underpinned the market. The WTI for November delivery on Friday reportedly increased USD 0.85 to settle at USD 51.45 a barrel on the New York Exchange, while Brent crude for December delivery rose USD 0.92 to close at USD 57.17 per barrel on the London ICE Futures Exchange.

US President Donald Trump said on Friday that he had decided to decertify Iran’s compliance with the landmark deal reached in 2015.

Analysts are of view that disorder in the Middle East and possible US action on the Iran nuclear deal heightened the oil prices, since traders are under geopolitical worries. On the data front, the number of rigs operating in U.S oil fields fell by 5 to a total of 743 rigs this week.

Best Share for Tomorrow Trading by Research Expert ( 5 Sep 2107)

Research Head (MONEY MAKER RESEARCH & INVESTMENT ADVISOR PVT LTD) is having a view that one can go long in NIITLTD.

“NIITLTD is the stock which I would recommend to buy above Rs 113.50; this can see a upside to levels closer to Rs 118-120 zones, keep stop loss below Rs 106”.

Cash flows for the Company improved during the course of the year under review, with better collections as reflected in lower receivable days at 80 at the end of the year (compared to 93 days a year ago).

The Company made a strong foray into Automation and Robotics, launching intelligent automation for business operations, aimed at driving greater business benefits for its clients globally. Towards this end, the Company has partnered with UiPath, a Software Company that specializes in Robotic Process Automation (RPA).

The Company also continued to make ongoing enhancements to its existing capabilities through investments in new emerging technologies, partnerships, and appropriate skills to deliver exceptional customer value and operational excellence.

NIITLTD was closed 4.73 per cent up today at Rs 110.80 at NSE.