PSU Banking stocks were on fire today, rallying by levels not seen anytime in the past, following a capital infusion of Rs 2.11 lakh crores into these banks announced by the govt.
This propelled the Sensex to a record closing of more than 33,000 points at 33,024 points and the Nifty to a record closing of 10,294 points. Most of the PSU banking stocks surged anywhere between 15 to 40 per cent in trade. Seldom does one see such a mad rush to buy banking stocks as was witnessed today.
PNB led gainers from the space with the stock jumping as high as 40 per cent. Along with this other stocks that gained from the space were Bank of Baroda, Union Bank, Canara Bank, Bank of India and some of the smaller PSU banking stocks.
Smaller PSU Banking stocks too saw a stupendous rally including Vijaya Bank and Corporation Bank. In fact, Corp Bank was stuck at the upper end of the circuit filter with only buyers in the counter, following a 20 per cent gain.
Interestingly, some of the larger private sector banks, which have been the darling of investors were dumped in favour of government owned banks. Kotak Mahindra Bank, IndusInd Bank, Yes Bank and HDFC Bank saw deep cuts.
Infosys, which declared a good set of results, but poor set of guidance managed to end the day with gains of near 1 per cent.
Companies engaged in construction of roads like Sadhbhav, IRB also saw a huge surge in their share prices, following the government's ambitious road outlay. Meanwhile, markets are expected to be volatile on Thursday, which would also be the last day of the expiry of the Oct F&O series.