Banking Shares Lift Markets

Banking Shares Lift Markets from 7-month low; Yes Bank Did Not say Yes to Bull run

India News

Top News of The Day 

The benchmark indices brushed aside concerns about the autonomy of the central bank and jumped 2 per cent to post their biggest single-day gain in two weeks.

Banking shares lifted the markets from 7-month low, and have significant weight in the benchmark indices. It led on reports that relaxation to the prompt corrective action (PCA) framework could be in the offing to enable more sanction of credit by public sector banks. Also, a Rs 400-billion bond-purchase announcement by the Reserve Bank of India (RBI) helped ease liquidity concerns.

Private lender ICICI Bank climbed nearly 11 per cent to Rs 349.20 apiece on Monday after reporting better-than-expected September quarter numbers. The State Bank of India and another half a dozen state-owned banks rallied more than 8 per cent each. The BSE benchmark Sensex closed 718.09 points, or 2.15 per cent, higher at 34,067.40 after surging over 800 points intra-day.

But, Yes Bank did not say Yes to Bull run. It stayed flat.

The rupee was flat against the dollar on Monday, but is down 13 per cent year-to-date, making it the worst-performing currency in Asia. Global crude oil prices eased to $77 per barrel. Prices have been hovering near $85 per barrel for past several weeks on fears that the impending sanctions on Iran’s petroleum industry would lead to constricted supplies. Cooling off of global crude prices is a positive sign for the market, said experts. Apart from the earnings season, market movement will also be dictated in part by poll in five Indian states in the next two months. The polls assume significance in the run-up to the general elections that are due in May next year.

Read More

Related Posts

Average Rating
0 out of 5 stars. 0 votes.
My Rating: