Bank stocks gain up to 4% on simplified FDI rules

Bank stocks today gained up to 4 per cent following the government's move to simplify foreign investment regime that boosted investor sentiment.
Shares of Axis Bank rose by 4.14 per cent, Kotak Mahindra Bank gained 4.03 per cent and Yes Bank climbed 3.11 per cent on BSE.
Among others, HDFC Bank was up 1.52 per cent and ICICI Bank rose by 0.83 per cent.
The BSE banking index ended 1.91 per cent higher at 21,996.69.
"Government's approval on composite FDI cap resulting in more capital flowing into the system lifted the sentiment," said Gaurav Jain, Director at Hem Securities.
Promising a simpler foreign investment regime, the government today introduced a concept of composite cap for all kinds of overseas inflows including through FDI, FII and NRI routes -- a move that may benefit retail companies and stock exchanges among others.

Stating that the concept of composite caps has been introduced for simplification of foreign investment norms, Finance Minister Arun Jaitley said, "From now onwards, all FIIs, NRIs and other foreign investments will be clubbed.
In the broader market, the benchmark BSE Sensex ended at 28,446.12, up 247.83 points.