Shares of public sector banks soared by as much as 11 per cent on Wednesday after a RBI panel suggested that government holding in PSU banks should be brought down to less than 50 per cent.
State-run Canara Bank, Bank of Baroda and Bank of India were amongst the top gainers of the day on the Bombay Stock Exchange.
While Canara Bank’s scrip jumped up by 10.68 per cent to close at Rs 333.80 apiece, Bank of Baroda’s share gained 9.22 per cent to end the day at Rs 958.85 a piece. Similarly, Bank of India scrip surged by 8.21 per cent to close at Rs 272.70. “The PSU banking stocks were seen in demand after a panel’s recommendation appointed by RBI,” said Alex Mathews, head research, Geojit BNP Paribas Financial Services. The BSE Bankex remained comparatively flat gaining 0.30 per cent while shares of the country’s largest lender State Bank of India also gained just 0.29 per cent on the BSE.
However, shares of Punjab National Bank recovered and gained 4.46 per cent to close at Rs 835.7 each on Wednesday. The bank had reported a near 29 per cent dip in its Q4FY14 net profit.
“Noticeable activity was witnessed in shares of state-run banks after the Reserve Bank of India panel report stated that the government should reduce holdings in PSU lenders to below 50 per cent,” said Jayant Manglik, president-retail distribution, Religare Securities Limited. A high-level panel appointed by the Reserve Bank of India had on Tuesday suggested that government stake in public sector banks should be pared down to less than 50 per cent.
Sensex snaps record run
MUMBAI: Indian stock markets took a breather on Wednesday with benchmark Sensex losing 56 points to retreat from a record as investors booked profits and ended four straight days of gains sparked by hopes of BJP-led NDA forming the next government at the Centre.
The Sensex, which had gained 1,547 points in four sessions in which three saw it hitting successive record highs, moved in narrow 211-point band today and closed at 23,815.12, down 56.11 points or 0.24 per cent. PTI