Banking stocks led the charge on Dalal Street after Finance Minister Nirmala Sitharaman presented her third consecutive Budget today. The surge in banking stocks came after FM Sitharaman said government would set up an asset reconstruction company to take over toxic assets.
Bank Nifty rose 2,484 points intra day to 33,049 against previous close of 30,565.
BSE bankex too surged 2,544 points intra day to 37,206 against previous close of 34,662.
On Sensex, IndusInd Bank and ICICI Bank rose up to 12% in afternoon trade. On Nifty too, the two lenders were the top gainers rising up to 12%.
Banking stocks were also enthused by the announcement that strategic divestment would be carried out in two public sector banks (PSBs) and one insurance company, in the next fiscal year.
The legislation required for disinvestment in the PSBs will be brought in the ongoing Budget session of Parliament, said the FM in her speech.
Additional capital infusion announcement of Rs 20,000 crore for state-owned banks by the FM also led to the positive sentiment in the banking space. Other banking stocks such as SBI, HDFC Bank and Kotak Mahindra Bank rose 9% , 5% and over 3% respectively in afternoon trade.
Meanwhile, Sensex rallied 2,219 points intra day to 48,504 and Nifty 623 points to 14,257. The rally in market came after six consecutive sessions of losses during which Sensex fell 3,600 points.