Moneycontrol
Last Updated : Jan 17, 2018 10:14 AM IST | Source: Moneycontrol.com

Banking stocks surge after govt cuts additional borrowing target to Rs 20k cr

The Nifty Bank gained was up around 0.28 percent, led by gains of 1-2 percent in ICICI Bank, Axis Bank, Punjab National Bank, Bank of Baroda and IDFC Bank, among others.

 
 
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Driven by the news of government borrowing requirement being cut, banking stocks surged during the morning trade, with indices gaining around half a percent.

Investors cheered the possibility of a marginal reduction in concerns of fiscal deficit. Bond yields too witnessed easing.

The Nifty Bank gained was up around 0.28 percent, led by gains of 1-2 percent in ICICI Bank, Axis Bank, Punjab National Bank, Bank of Baroda and IDFC Bank, among others.

Nifty Bank

Meanwhile, the Nifty PSU banks witnessed a bigger surge based on this development, up around 1 percent. Indian Bank, Bank of Baroda, Bank of India, Union Bank of India, Allahabad Bank, Punjab National Bank, and Canara Bank gained around 1 percent.

Nifty PSU banks

For the uninitiated, the secretary to the Department of Economic Affairs in the Finance Ministry, Subhash Garg, in a tweet, outlined the need for lesser government borrowing.

“The move is a big positive surprise. We were mindful of the indirect tax collection falling short of expectations. In that context, this is a big surprise. It also means that a shortfall in indirect taxes is being made up (for). All in all, this is a positive surprise, which is getting reflected in the market,” Manishi Raychaudhuri, Asian Equity Strategist, Equity Cash Asia Pacific, BNP Paribas told CNBC-TV18 in an interview.
First Published on Jan 17, 2018 10:14 am
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