Benchmark indices surged in trade with the Sensex hitting a new record of 33,000 points, after the government announced a huge recapitilization of Rs 2.11 lakh crores in PSU banks.
Shares in Public Sector Banking units surged after the approval by the government of fresh infusion of capital into these banks. The government had on Wednesday announced recapitalization measures to the tune of Rs 2.11 lakh crores in government owned banks.
There was a crazy rush to buy government banking stocks like never seen before.
State Bank of India, the country's largest lender rallied a huge24 per cent in trade. One would seldom here or see such a large cap stocks surging 24 per cent. Among the other government owned banks that gained were the larger lenders including the likes of Bank of Baroda and Punjab National Bank. In fact, Bank of Baroda was up 25 per cent and PNB surged a huge 32 per cent in trade. Union Bank, Canara bank, Bank of India, IDBI Bank, Dena Bank and scores of other PSU banks jumped from 15 to 35 per cent.
One stock that bucked the trend was HDFC Bank, whose shares fell sharply, by almost 2.5 per cent. Shares in Infosys were trading higher despite weak guidance. HCL Tech, which reported quarterly numbers today dropped marginally in trade. The quarterly numbers were largely in line with analysts estimates.
Analysts expect some profit booking in government banks, later in the day.