With market recovering by a huge quantum post lower circuit filter and now Nifty at day's high of 9830 points, there is seen big recovery on the Bank Nifty as there have come some favourable announcements.
RBI has written to the chiefs of states and has assured that deposits with private sector banks are safe after Yes Bank fiasco. This comes on the back of state's considering moving funds out from private sector bank and the centre has said this shall be detrimental to the entire financial sector.
Also, amid the upward move in banking stocks, the one stock that gained most and is in fact the top gainer on Nifty is SBI stock which scaled to intra-day high of Rs. 243.10 per share, gaining 14% as against price of Rs. 212.75 on the BSE at yesterday's close.
The gains are primarily on account of bank's investment being approved by the PSU lender in Yes Bank, with purchase of 725 crore shares at Rs. 10 per share. After the lender's investment, the shareholding of SBI will remain capped up to 49% of Yes Bank's paid-up capital.