PSU Bank index gains 1% led by Central Bank, Union Bank

The banking stocks rallied for the third consecutive session after the Supreme Court ruled in favour of financial creditors in Essar Steel case.

Nov 19, 2019 06:11 IST India Infoline News Service

The Nifty PSU Bank index gained 1% at 2,517.05 levels in the noon trade, as buying was witnessed in Central Bank, Union Bank, Bank of India and Syndicate Bank.

The banking stocks rallied for the third consecutive session after the Supreme Court ruled in favour of financial creditors in Essar Steel case.

Shares of Central Bank surged 5%, followed by Union Bank and Bank of India, which soared 3% each. Syndicate Bank, Canara Bank, PNB and Bank of Baroda were up over 1% each.

Shares of Corporation Bank hit 20% upper circuit at Rs26.45 on the BSE on Tuesday, thus zooming 68% in past 3-trading days.

On the other hand, J&K Bank and Allahabad Bank were trading flat on the banking index.

On Friday, the Supreme Court (SC) said the National Company Law Appellate Tribunal (NCLAT) should not interfere with the decisions of the committee of creditors (CoC) in the Essar Steel insolvency case. Accordingly, SC gave more weightage to the financial creditors.

SBI Life Insurance, Bharti Airtel, Yes Bank, ICICI Bank and Reliance Industries were the most active stocks.

Shares of Essel Propack, Bharti Airtel, Dr. Lal Pathlabs, CreditAccess Grameen, Ipca Labs, Bajaj Finserv and Alkem Labs hit a new 52-week high on the NSE.

Further, the Indian rupee recovered and currently trading flat at 71.85 per dollar.

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