Bank stocks gained ground at the bourses in early morning deals on Monday, as investors looked forward to the debt restructuring system kicking-in from September 1, allaying considerations concerning the six-month moratorium amount.
Nifty Bank index flat-top the 25,000-mark, and hit a high of 25,233, up 2.4 per cent on the NSE. However, a correction in the markets on account of politics problems saw the markets and these stocks pare morning gains as trade progressed.
Individually, IndusInd Bank soared 8.2 per cent within the intra-day trade to quote at Rs 711. Axis Bank gained around five per cent, ICICI Bank, banking company of Bharat (SBI) and HDFC Bank added three per cent every. Bandhan Bank, Federal Bank, Bank of Bharat, and RBL Bank, meanwhile, rose between two and four per cent.
Deepak Jasani, head of retail analysis at HDFC Securities, believes that when the depository financial institution of Bharat (RBI) has allowed debt-recast below the last financial policy meeting, it’s conjointly allowed extension of moratorium on case-to-case basis below the debt-recast provision itself. “Thus, whereas blanket moratorium is over, individual moratoriums should be in situ,” Jasani said.