Banking Index surges over 8 pc in early trade

Wednesday, July 23, 2008 at 10:07 am

The banking index of the Bombay Stock Exchange today surged as much as eight per cent in early morning trade after the government won the confidence vote with absolute majority and said it will go ahead with its unfinished economic reforms agenda.

The Banking index today opened firm at 6,961.81 points, a jump of 332.83 points over its previous close of 6,628.98 points.

Marketmen said the surge in the banking index was largely due to the positive sentiments in the market as corporate India believes the win in the trust vote would give a boost to the government for furthering its much-awaited reforms agenda.

“With 275 votes, this government has an absolute majority and this is a confidence to go forward,” Finance Minister P Chidambaram had said after the trust vote yesterday.

The 17-share index touched an intra-day high of 7,191.98 points and was quoted at 7,159.86 points at 10 am, a change of 531 points or over 8 per cent against yesterday’s closing figure.

Crucial legislations in insurance and banking sectors and bills for setting up of a pension regulatory body and one for unorganised sector had been pending following opposition from the Left parties that were till recently providing outside support to the UPA Government.

Among the constituents of the banking index, ICICI Bank surged over 9 per cent, State Bank of India jumped 6.60 per cent and HDFC Bank rose nearly 8 per cent.

Meanwhile Axis Bank was up 6.54 per cent, Kotak Bank up 9.25 per cent, Punjab National Bank up 5.16 per cent and Bank of India up 5.63 per cent.

“The Government will be approaching other members who are not opposed to economic and social reforms and so we will move ahead with the reforms,” Chidambaram had said.

(Agencies)

( This post is from an independent writer. The opinions and views expressed herein are those of the author and are not endorsed by APakistanNews.Com.)

Banking Index surges over 8 pc in early trade

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