Tuesday, 27 Aug, 1.18 am Deccan Chronicle

Financial, infrastructure stocks surge

Mumbai: Banks, NBFCs and infrastructure stocks surged after the government announced a stimulus package on Friday.

The Nifty Bank Index surged 3.68 per cent while the BSE Bankex gained 3.57 per cent.

The BSE Capital Goods Index also gained 2.84 per cent.

'The reform announcements have helped offset the weak global cues on account of the escalation in US-China trade war,' said Care Ratings.

An upfront release of Rs 70,000 crore capital to the struggling public sector banks was announced on Friday evening, which led to gains in the stocks of public sector banks.

The Nifty PSU Bank Index gained 3.58 per cent and the top gainers included Indian Bank, Central Bank of India and Allahabad Bank.

Additional liquidity support to housing finance companies (HFCs) by Rs 20,000 crore in addition to the recently approved infusion of Rs 10,000 crore by the government, taking the total infusion of Rs 30,000 crore by the National Housing Bank into HFCs would help ease the liquidity challenges faced by certain HFCs, said Care Ratings. The HFCs were big gainers on the BSE, led by DHFL.

With the Cabinet Secretariat and the Department of Expenditure set to monitor delayed payments from government and central public sector enterprises (CPSEs), infrastructure-focused companies gained in the market.

The key gainers in this space included Larsen & Toubro (3.63 per cent), Sadbhav Engineering (11.37 per cent), HCC (7.32 per cent), NBCC (3.60 per cent), BHEL (3.42 per cent) and ABB (4.5 per cent).

"The infrastructure sector in India has been plagued by the issues of liquidity and finance crunch. The setting-up of an inter-ministerial task force to finalise the pipeline of infra projects whose financing and execution are to be put on the fast-track, highlights the positive that would be ushered in by the FM's reform agenda," said Anil Sardana, Co-Chairman, CII Infrastructure Council and MD & CEO, Adani Transmission.

Disclaimer: This story is auto-aggregated by a computer program and has not been created or edited by Dailyhunt. Publisher: Deccan Chronicle