Bank Stocks On Bull Momentum As Finance Ministry Announces INR 2.11 Trillion Bank Recapitalization Plan For Public Sector Banks
Today’s market has seen a huge boost in bullish momentum on bank stocks since market opened for the day and this bull run is visible especially in Public Sector Bank stocks. This bull momentum in bank stocks occurred on announcement from Indian Finance Ministry regarding INR 2.11 trillion bank recapitalization plan for public sector banks who are weighed down by bad loans to stimulate the flow of credit in said banks.
This move is expected to see huge increase in their market capitalization for many public sector banks. The funds for recapitalization move is expected to be made from two major moves, INR 1.35 Trillion is expected to be arranged through sales of recapitalization bond by Government details of which has not been announced yet and remaining INR 76,000 crore is expected to be made through government’s budgetary allocation. Since trading session opened for the day stock value of Punjab National Bank, Bank of Baroda, Canara Bank and State bank of India have sky rocketed.
This is clearly visible in gains made so far by the stocks in BSE and NSE. The stocks are currently at Punjab National Bank with 30.82% in NSE and 31.86% in BSE, Bank of Baroda with 22.60% in NSE and 22.60% in BSE, Canara Bank with 19.80% in NSE and 19.58% in BSE and State Bank of India with 17.96% in NSE and 17.94% in BSE. Nifty Bank index and S&P BSE Bankex index are currently trading with 1.88% & 3.32% increase in value respectively.
Details on change in value for NIFTY PSU BANK index since trading session opened for the day in NSE in provided in image below :
Source : Moneycontrol.com – NSE data 11:16 AM
Details on change in value for stocks under Nifty bank benchmark index is provided in image below :
Source : Moneycontrol.com – NSE data 11:19 AM
Details on change in value for stocks under S&P BSE Bankex benchmark index is provided in image below :
Source : Moneycontrol.com – BSE data 11:19 AM
Details on change in value for all PSU bank stocks in NSE is provided in image below :
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