Modi govt’s mega plan: Banking Stocks Rally

Banking, particularly PSU bank stocks buzzed after Modi govt’s mega plan of Rs 2.11 lakh crore to recapitalization was announced. Effectively, heavy volumes were detected in banking stocks. Notably, the trading volume was enormous in the banking stocks that Nifty Bank index with several banking stocks surpassed the turnover of the 50-share Nifty index.

The stocks the PSU bank index of NSE traded in green today with SBI and PNB jumping up to 40%.  Nearly Rs 16405 crore worth of shares exchanged hands on the Nifty Bank index. SBI spurted 24.56% to hit the 52-week high of Rs 316.95, which itself solely contributing Rs 5,700 crore to the trading turnover.

PNB was the biggest gainers among the banking stocks, which rose 40% to hit the 52-week high of Rs 193.45. Bank of Baroda rose 28%, Union Bank of India soar 29%, Canara Bank  up 34%, Bank of India jump 30%, OBC up 25%, among the rally of  many PSUs.

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. 

Nifty Realty spikes by 1.22%

Realty stocks registered a surge on Tuesday at lunch hours, rising up the Nifty Realty index higher by 1.22%. With the Real Estate Regulatory Authority and GST settling in, market players expect sales of residential and commercial units to pick up.

Sobha developers Limited was leading the Nifty pack, with its stocks trading at Rs. 538.05 per share, higher by 4.65%, while the stock of Prestige Estates Projects Limited was trading at Rs. 289.95, up by 3.89%, and Godrej Properties was at Rs. 687.10, up by 3.87% followed by the shares of Housing Development & Infrastructure which was at Rs. 55.80 per share, up by 2.86%. Among realty stocks, Brigade Enterprises, DLF and India Bulls Real Estate were trading in the green zone, while Phoenix Mills, Oberoi Realty and Unitech were trading in the red zone at during the day. 

At 2:30 pm, Nifty50 was trading at 10,212.20, higher by 27.35 points while BSE Sensex was trading at 32,600.75, higher by 94 points.