Nifty PSU Bank gains 3% led by Bank of India, Union Bank, PNB

Shares of Bank of India and Union Bank, which gained 7% and 6% respectively, were leading the index’s gain.

Mar 19, 2019 08:03 IST India Infoline News Service

PSU Banks
The Nifty PSU Bank index gained 2% on Tuesday amid heavy buying in Bank of India, Union Bank, Punjab National Bank (PNB), Central Bank, and Oriental Bank of Commerce.

Shares of Bank of India and Union Bank, which gained 7% and 6% respectively, were leading the index’s gain. Shares of PNB and Oriental Bank of Commerce rose 5% each, while those of Bank of Baroda, Central Bank, and Canara Bank gained 3% each.  Shares of Indian Bank, J&K Bank, Syndicate Bank, and SBI also contributed to the index’s rally, rising 2% each.

Shares of Central Bank gained after the board of the company approved proposal to raise up to Rs270cr by issuing shares to its staff under the employee share purchase scheme (ESPS). The approval was granted to raise equity capital by issuance and allotment of up to 10cr shares at the issue price of Rs27/share, the bank said in a regulatory filing.

Further, shares of Canara Bank gained on plans to raise long term foreign currency funds by issuing Senior Unsecured Bonds (Medium Term Notes) in the international markets to the extent of $500mn under its Medium Term Notes (MTN) Programme, depending on the market conditions.

Meanwhile, the Indian rupee gained on Tuesday with appreciation of 19 paise to trade at day’s high level of 68.34 against the dollar. The home currency opened on a flat note at 68.53/$ unchanged from its previous close. However, the domestic unit is playing seesaw game with the Amercian currency and erased its morning gains. 

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