Sensex at record high, bank shares soar on recapitalisation plan
The Bombay Stock Exchange (BSE) Sensex climbed as much as 1.6 per cent to a record high of 33,117.33, buoyed by a surge in prices of banking shares after the Cabinet nod to a $32.43 billion plan to recapitalise state banks over the next two years.
State Bank of India, the biggest lender, rose more than 20 per cent. Punjab National Bank, the second biggest public sector lender, surged more than 33 per cent.
Bonds, however, fell, given the injection will be funded with debt, Reuters reported.
The benchmark NSE Nifty rose as much as 1.3 per cent to a record high of 10,340.55.
Bonds fell, with the benchmark 10-year bond yield up 3 basis points to 6.81 percent from its previous close.