Banking stocks in demand; jump up to 7 pc

Private sector lender, Axis Bank on Tuesday reported a loss of Rs 1387.78 crore for the quarter ended March 2020 on higher provisioning cost.
Axis Bank,

New Delhi, May 13 (PTI) Banking stocks on Wednesday jumped up to 7 per cent after the government announced Rs 20 lakh crore stimulus package for the coronavirus-hit economy.

Axis Bank, the top gainer in the Sensex pack, surged 7.02 per cent, ICICI Bank gained 5.04 per cent, SBI 4.44 per cent, Federal Bank 4.10 per cent, RBL Bank 3.93 per cent, HDFC Bank 2.92 per cent, Kotak Mahindra Bank 2.35 per cent, City Union Bank 1.45 per cent and IndusInd Bank 0.48 per cent.

Led by gains in these stocks, the BSE Bank index rose by 3.88 per cent.

The BSE benchmark zoomed 637.49 points or 2.03 per cent to close at 32,008.61 on Wednesday, driven by gains in banking stocks.

“The much-awaited stimulus package announced by the PM cheered the investors on Wednesday which triggered a decent up move in the benchmark as well. The stimulus package has certainly boosted the market mood, however, a lot depends upon the details of the package which the FM will share after the market hours,” Ajit Mishra, VP – Research, Religare Broking Ltd, said.

Prime Minister Narendra Modi had on Tuesday announced the new financial package on top of the previously announced measures for a combined stimulus of Rs 20 lakh crore to revive demand and jumpstart growth.

Giving details of the stimulus package in a post-market hours press briefing, Finance Minister Nirmala Sitharaman announced Rs 3 lakh crore collateral-free automatic loans for businesses, including MSMEs, as well as Rs 30,000 crore liquidity facility for NBFCs, among other measures.

Source: PTI

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