Market observers pointed out that almost all the major PSBs like State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BoB) rose in the band of 20-40 per cent.
The S&P BSE bank -- BANKEX -- zoomed by 1,274.17 points or 4.71 per cent.
On bank-specific basis, SBI's scrip gained Rs 70.20 or 27.58 per cent to Rs 324.70 per equity share on Wednesday.
Other gainers include -- PNB's shares rose by Rs 63.80 or 46.20 per cent to Rs 201.90; BoB's stocks edged higher by Rs 45.05 or 31.47 per cent to Rs 188.20; Bank of India scrip were up Rs 47.70 or per cent 33.96 per cent to Rs 188.15 and Canara Bank were up Rs 120.70 or 38.05 per cent to Rs 437.90.
"Today's up move in the key indices was based on yesterday evening's announcement on PSU bank recapitalisation. The large PSU bank stocks were expected to rise from 20-40 per cent depending on the individual bank's capital adequacy and NPA levels and most of those stocks have risen in this band only," Deepak Jasani, Head - Retail Research, HDFC Securities, told IANS.
"Volumes in the NSE was a high of above Rs.57,000 cr out of which a large portion was concentrated towards the banking/NBFC counters and especially the large PSU bank counters."
Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS: "Almost all PSBs' stocks like those of SBI, BoB and PNB rose to touch their new 52-week highs during the intra-day trade."
"The rise in PSB stocks not only lifted the sectoral index but also the benchmark indices -- BSE Sensex and NSE Nifty -- to touch their all time highs during the intra-day trade."
The surge in PSB banks also lifted key Indian equity indices -- S&P BSE Sensex and NSE Nifty 50 -- to breach their respective intra-day and closing record highs.
On intra-day record high basis, the barometer 30-scrip Sensitive Index (Sensex) of the BSE touched 33,117.33 points, while broader 50-scrip Nifty at the National Stock Exchange (NSE) reached 10,340.55-points.
Besides new intra-day highs, the S&P BSE Sensex which opened at 32,995.28 points, closed at a new high of 33,042.50 points, up 435.16 points or 1.33 per cent from its previous day's close at 32,607.34 points.
The index had slipped to a low of 32,804.60 points during the trade session.
Similarly, the NSE Nifty 50 closed at a new high of 10,295.35 points, up 0.86 per cent or 87.65 points.
On Tuesday, the Union Cabinet approved a Rs 2.11 lakh crore recapitalisation plan for state-run banks and massive road infrastructure investment of nearly Rs 7 lakh crore over five years.
In terms of support to banks, Rs 1.35 lakh crore will be raised through recapitalisation bonds and the remaining sum through budgetary support and market borrowings, Financial Services Secretary Rajiv Kumar told the media in the presence of Finance Minister Arun Jaitley and a battery of Ministry Secretaries.
Under the road connectivity programme, the government will construct 84,000-km highways in five years. Of this, the Bharatmala project component will involve an outlay of Rs 5.35 lakh crore and generate 14.2 crore man-days of work.
Its funding will be raised as debt from the market (Rs 2.09 lakh crore), private investments through PPP (Rs 1.06 lakh crore) and from accruals to the central road fund and toll collections (Rs 2.19 lakh crore).
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.
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