Banking stocks live it up, Sensex rises 276 points

Infosys stock made a significant rally by climbing 1.98 per cent to Rs 894.50 on value-buying

A late surge in banking stocks, spurred by Cabinet decision on consolidation of public banks, pulled markets higher on Wednesday, as the Sensex closed up 276 points, in line with a firming global trend.

The broader Nifty ended on top of 9,800 again.

The government on Wednesday decided to set up an alternative mechanism to oversee proposals for consolidation of public sector banks (PSBs) with a view to creating fewer but stronger lenders.

State-run Punjab National Bank, Bank of Baroda, Allahabad Bank, Union Bank of India and Bank of India were at the centre of investors' attention, which recorded moderate to sizeable gains.

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