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Banking shares push Sensex, Nifty to record highs after Cabinet approves bad bank

Banking shares push Sensex, Nifty to record highs after Cabinet approves bad bank

Share of PSU banking major State Bank of India (SBI) rose 1.72% to all-time high of Rs 471.85 on BSE today

Bank Nifty zoomed 444 points during the day. It touched an intra day high of 38,112 against previous close of 37,668. Bank Nifty zoomed 444 points during the day. It touched an intra day high of 38,112 against previous close of 37,668.

Banking shares took the Indian benchmark indices to record highs today after finance minister Nirmala Sitharaman announced formation of a bad bank for transfer of NPAs from public sector banks.

While Sensex rose 596 points to 59,737, Nifty gained 163 points to all time high of 17,792.

Powering today's rally, BSE bankex rose 568 points to intra day high of 43,530 in early trade.

The index closed at 42,962 in the previous session. Share of PSU banking major State Bank of India (SBI) rose 1.72% to all-time high of Rs 471.85 on BSE today.

Also read: Govt-backed 'bad bank' yet to tie up some loose ends; here's a list

SBI share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The stock has gained 131.82% in one year and risen 65% since the beginning of this year.

Share of another PSB Indian Bank rose 3.7% to an intra day high of Rs 144.2 against previous close of Rs 139.05 on BSE. Indian Bank share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

In a year, Indian Bank share has zoomed 119% and risen 59% since the beginning of this year.

Share of another PSB Central Bank rose 4.95% to intra day high of Rs 24.35 against previous close of Rs 23.20 .

Central Bank share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Union Bank share gained 2.18% to Rs 37.55 against previous close of Rs 36.75 on BSE.

The banking share trades higher than 5 day, 20 day and 200 day moving averages but lower than 50 day and 100 day moving averages.

Another key index Bank Nifty zoomed 444 points during the day. It touched an intra day high of 38,112 against previous close of 37,668.

On September 16, the Union Cabinet cleared a government guarantee of up to Rs 30,600 crore for security receipts (SRs) issued by the National Asset Reconstruction Company Ltd (NARCL) on September 16.

The government plans to transfer around Rs 2 lakh crore non-performing assets (NPAs) to the new bad bank, of which Rs 90,000 crore will be infused in the first phase.