Banking shares on a roll, Bank Nifty zooms over 10%

ICICI Bank, SBI, Canara Bank, PNB, Kotak Mahindra Bank, HDFC Bank, Axis Bank and YES Bank has surged upto 20% on the NSE.

Banking shares are on a roll with the Bank Nifty, a gauge for banking shares, rallying 10.6% to 15,742, also its record high on the National Stock Exchange (NSE). The benchmark CNX Nifty has gained 6.2% to 7,563.50, also its new high today.

ICICI Bank, State Bank of India, Canara Bank, Punjab National Bank, Kotak Mahindra Bank, HDFC Bank, Axis Bank and YES Bank has surged between 8-20%.

According to a Reuters report, state-run banks plan to tap capital markets to raise money after a new government takes office, betting on a revival in credit demand and giving them a chance to shore up battered balance sheets.

State lenders, which control roughly 75% of the banking industry, are looking to raise funds from the market instead of relying on capital infusions from the cash-strapped government, added report.

Early results put Narendra Modi on course for an absolute majority in the Lok Sabha polls. Trends at 10:30 am show the NDA leading in 316 seats, UPA in 70 seats and others in 153.