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Banking shares rebounds as September trade deficit narrows

At 1240 hours, Bank Nifty was up nearly 1% at 10,197, recovered 3% from intra-day low of 9,947 on NSE.

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SI Reporter Mumbai
Last Updated : Oct 09 2013 | 12:43 PM IST
Banking shares is trading higher by up to 3% erasing their early morning losses after September trade deficit narrowed at $6.7 billion against $10.91 billion in August.

Bank of India, YES Bank, IndusInd Bank, Bank of Baroda, HDFC Bank and Kotak Mahindra Bank are up 2-3% on the National Stock Exchange (NSE).

The NSE banking share index Bank Nifty was up nearly 1% at 10,197 at 1240 hours, recovering 2.5% from intra-day low of 9,947 touched in early morning deals today.

The narrowing of the trade deficit sparked further appreciation of the rupee. Indian rupee strengthened to 61.855 per dollar at 1240 hours from around 62.10 before the data release.

The moderation in trade deficit will help lower the current account deficit, which touched a record 4.8% of GDP last year, triggering a massive depreciation of the rupee.

Among the individual stocks, IndusInd Bank has surged 3% at Rs 413, recovering nearly 6% from intra-day low of Rs 390 on NSE.

YES Bank was up 2.4% at Rs 337, followed by Bank of India and HDFC Bank are up 2% each at Rs 181 and Rs 643 respectively.

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First Published: Oct 09 2013 | 12:37 PM IST

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