Banking shares in focus, Bank Nifty surges over 2%

ICICI Bank, SBI, Federal Bank, Indusind Bank, BoB, Kotak Mahindra Bank, BOI and YES Bank are up 2-3% on NSE.

Banking shares are in limelight on the bourses with most of the frontline stocks trading higher by up to 3%, after the rupee appreciated in early trades against the dollar on the back of positive sentiments in the market.

ICICI Bank, State Bank of India, Federal Bank, Indusind Bank, Bank of Baroda, Canara Bank, Kotak Mahindra Bank, Bank of India, YES Bank and Union Bank of India are up 2-3% on the National Stock Exchange (NSE).

At 1015 hours, the Bank Nifty has outperformed the market by surging 2.4% compared to 1% rise in benchmark CNX Nifty.

The rupee was trading at Rs 60.97 compared with previous close of Rs 61.22 per dollar after US lawmakers reached a deal to end the government shutdown and temporarily avoid a debt default.

Both, the House and the Senate passed a bill to end the sixteen-day government shutdown and raise the debt ceiling which was later signed by the President Barack Obama.

Among the individual stocks, ICICI Bank and Indusind Bank has surged 3.3% each at Rs 997 and Rs 402 respectively. Bank of Baroda was up 3% at Rs 550 followed by Canara Bank (up 2.5% at Rs 228) and Bank of India, Union Bank of India, YES Bank and HDFC Bank are up 2% each.