With a rise of 10 per cent in a single day trading, BSE banking index emerged as the top gainer among the sectoral indices. The market reacted positively to the finance minister’s announcement of taking forward the Banking Regulation Amendment Bill.
The bill that promises amendments pertaining to long term benefits for financial sector has been pending in Parliament since 2005 as the government’s main ally the Left parties stood against the bill. “There are four major amendments — removal of voting right cap of 10 per cent, FDI in insurance sector up from 26 per cent to 49 per cent, pension fund reform and changes in SBI Act,” said Abhijeet Majumdar, banking analyst with Sharekhan.
The development saw banks gaining significantly on share price rise. Yes Bank emerged as major gainer as its share price was up 16.8 per cent. Karnataka Bank and Kotak Mahindra bank followed closely with gains of 14.7 and 13.5 per cent.