PSU Bank, Financial stocks gain; Yes Bank surges 4%

All banking stocks surged on expectations that Shaktikanta Das could support public lenders in the recapitalization process.

Dec 12, 2018 05:12 IST India Infoline News Service

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Banking and non-banking financial companies (NBFCs) stocks gained on Wednesday after the government appointed a successor to Urjit Patel.

After market hours on Tuesday’s trade, Shaktikanta Das, a former economic affairs secretary, was appointed as the new governor of the central bank.

All banking stocks surged on expectations that Shaktikanta Das could support public lenders in the recapitalization process.

Nifty PSU Banks was up 2% led by Bank of India, which has jumped over 6%, while Vijaya Bank, Union Bank, Central Bank of India, and Oriental Bank of Commerce were among the other gainers.

Nifty Bank and Nifty Private Bank indices were up in today’s trade.

Also, Nifty Finance service index rose 1.2% to 11,206 in morning trade. M&M Finance, Indiabulls Housing Finance, HDFC Life and Bajaj Finance rallied 6-3%, respectively.

Shares of Yes Bank gained 4% ahead of the board meeting on Dec 13 to discuss the successor to Rana Kapoor whose term as the MD and CEO ends on January 31, 2019.

Federal Bank, Yes Bank, IDFC Bank, Federal Bank, and Axis Bank rose 4-2%, respectively.

Meanwhile, the Sensex rose 358 points to 35,508, while the Nifty jumped 105 points to 10,654. The market breadth is positive with 1,381 shares advancing, 253 shares declining, and 418 shares remaining unchanged on the NSE.

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