Nifty PSU Bank index pares gains to fall over 1%; Canara Bank down 4%

Nifty PSU Bank index rallied 8% to 4,335 in early morning trade, extending its Wednesdays' 30% surge on the NSE

Shares of public sector undertaking (PSU) banks pared morning gains to fall over 1% on profit booking, snapping Wednesday's rally. The PSU Banks rallied after Finance Minister Arun Jaitley spelt out an ambitious Rs 2.11-lakh-crore recapitalisation plan for the government banks. The announcement was made post market hours on Tuesday.

Nifty PSU Bank fell 1.2% to 3,960 after rallying 8% in the earli-morning deals. It rallied 30% rise on the National Stock Exchange (NSE) on Wednesday . The index was trading its highest level since January 29, 2015, when its hit 4,410 in intra-day trade. It touched an all-time