Banking shares mainly private sector have rallied by up to 5% on the bourses after the Cabinet today cleared a proposal to merge the limits of foreign direct and portfolio investments into composite caps to make foreign investment regime easier. CLICK HERE TO READ FULL REPORT
Axis Bank, Kotak Mahindra Bank, YES Bank, HDFC Bank and ICICI Bank were up 1%-5% on the National Stock Exchange (NSE).
At 1347 hours, Bank Nifty - the NSE banking share index, was up 1.7% or 321 points at 19,137, as compared to 0.80% rise in the benchmark CNX Nifty at 8,592.
Among the individual bank, Axis Bank the largest gainer, up nearly 5% to Rs 612, while YES Bank and Kotak Mahindra Bank up 4% each at Rs 833 and Rs 741 respectively. Kotak Mahindra Bank hit a record high of Rs 743 in intra-day trade.
HDFC Bank up 1% at Rs 1,110, too hit a lifetime high of Rs 1,115 on the NSE in intra-day trade.
Meanwhile, according to JP Morgan Global Equity Research, despite macro concerns (rebound in oil, rise in rates) India still offers long-term value, with private banks seeing accelerating market share trends and solid fundamentals.
The asset quality improved at private banks and loan growth was high at +24% year-on-year (YoY) on average for the group. “Market share” gains at private banks look to be accelerating, given better capital and reserve coverage (they still only control around 20% of lending), JP Morgan said in a report dated July 9, 2015.
Axis Bank, Kotak Mahindra Bank, YES Bank, HDFC Bank and ICICI Bank were up 1%-5% on the National Stock Exchange (NSE).
At 1347 hours, Bank Nifty - the NSE banking share index, was up 1.7% or 321 points at 19,137, as compared to 0.80% rise in the benchmark CNX Nifty at 8,592.
Among the individual bank, Axis Bank the largest gainer, up nearly 5% to Rs 612, while YES Bank and Kotak Mahindra Bank up 4% each at Rs 833 and Rs 741 respectively. Kotak Mahindra Bank hit a record high of Rs 743 in intra-day trade.
HDFC Bank up 1% at Rs 1,110, too hit a lifetime high of Rs 1,115 on the NSE in intra-day trade.
Meanwhile, according to JP Morgan Global Equity Research, despite macro concerns (rebound in oil, rise in rates) India still offers long-term value, with private banks seeing accelerating market share trends and solid fundamentals.
The asset quality improved at private banks and loan growth was high at +24% year-on-year (YoY) on average for the group. “Market share” gains at private banks look to be accelerating, given better capital and reserve coverage (they still only control around 20% of lending), JP Morgan said in a report dated July 9, 2015.
