In the month of December, the finance ministry suggested that govt may borrow an additional Rs. 50000 crore in the current fiscal year. And today Economic Affairs Secretary S C Garg tweeted that the additional borrowing target has been reduced to Rs. 20000 crore.
With it Nifty Bank gained as much as 0.46 % in intra-day trade today with gains between 1-2% in banking stocks including ICICI Bank, IDFC Bank, BOB, PNB and Axis Bank among others.
With it the yield on benchmark 10-year bond also eased and was down over 15 basis points. Yesterday the bond markets spooked after the hawkish comment by RBI's Deputy Governor which sent the yields on widely traded bond soar to 7.58%.
Nifty PSU Bank surged more in comparison by 1.97% on the back of the development. In the pack, Indian Bank, BOB, Canara Bank, Allahabad Ban, Union Bank of India all gained over 1% in trade.
In intra-day trade on Wednesday, Nifty was trading at a day's high of 36960.10 up 0.5% while Nifty was last trading at 10,749.4 higher by 0.46%.