Nifty Bank hit another new high for the second consecutive day. On Tuesday, the banking index rose close to one percent to a record high of 32,213.35.
The rally began on Monday on account of ArcelorMittal's transfer of about Rs 40,000 crore to the current account of Essar Steel's lead banker, State Bank of India, to take over the debt-ridden company under the new Insolvency and Bankruptcy Code. The one-month deadline for the world's largest steelmaker for the full payment ended on Monday.
Shares of SBI rose by 0.93 percent to Rs 335.75 on Tuesday. Shares of other public sector banks like Punjab National Bank, Oriental Bank of Commerce, Bank of Baroda and more were trading 0.5-1 percent higher. HDFC Bank and ICICI Bank shares were up by close to 0.5 percent each on Tuesday morning.