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.

HDFC Bank, Infosys Ltd Flat Ahead Of Q2

Sensex and Nifty opened on a positive note on Monday. Sensex gained over 100 pts and Nifty crossed the 10,200 level. HDFC Bank shares Flat were trading on a flat note ahead of Sept quarter earnings. HDFC Bank stock rose about 0.6 % to Rs 1,875 in later morning hours today. Its net interest income rose 20.2%  to Rs 9,610 crore V/s Rs. 7,994 crore year-on-year, while net profit seen increasing 20.7% Rs 4,171 crore from Rs 3,455 crore in the corresponding period last year.

Shares of Infosys Ltd also were trading flat in morning trade on Tuesday ahead of its results of Q2 Sept 30, 2017. Infosys will announce its financial results after market hours today. The scrip was trading 0.01% down at Rs 939.60 in the morning hours. Its shares opened at Rs 945 and touched a high of Rs 947.50 and low of Rs 937, during the time.

As per Reliance Securities estimation, Infosys Ltd may report revenue of Rs 17,560 crore in Quarter-2 FY-18 over Rs 17,078 crore in Quarter-FY 18. It said, the USD revenue is expected to jump by 3.6% on QoQ, while revenue in constant currency growth is pegged at 2.4% on QoQ.