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BS Bank Aspirex, a new index by Business Standard covering 16 companies that have applied for banking licences, have outperformed the market after underperforming in first two consecutive months after the new Reserve Bank of India (RBI) governor Raghuram Rajan reiterated that new bank licences will most likely be announced around January next year.
BS Bank Aspirex has gained 7.4 per cent in September against less than five per cent rise in benchmark indices, after a sharp rise in market price of the listed companies who applied for the new banking license. The S&P BSE Sensex and the National Stock Exchange CNX Nifty were up four per cent and 4.8 per cent, respectively, while the banking index Bank Nifty surged six per cent during the last month.
In the first two months, since July 1, the last day of applying for a banking licence with RBI, BS Bank Aspirex had dipped 20 per cent as compared to less than seven per cent decline in benchmark indices.
Among the individual stocks, L&T Finance Holdings, IFCI, Bajaj Finance, LIC Housing Finance and Aditya Birla Nuvo had rallied more than 10 per cent each on the BSE. However, Muthoot Finance, India Infoline, Magma Fincorp, Toursim Finance Corporation of India and Srei Infrastructure Finance recorded negative returns during the month.
According to reports the RBI is likely to complete initial scrutiny of 26 applications for new bank licences in a month.
BS Bank Aspirex has gained 7.4 per cent in September against less than five per cent rise in benchmark indices, after a sharp rise in market price of the listed companies who applied for the new banking license. The S&P BSE Sensex and the National Stock Exchange CNX Nifty were up four per cent and 4.8 per cent, respectively, while the banking index Bank Nifty surged six per cent during the last month.
In the first two months, since July 1, the last day of applying for a banking licence with RBI, BS Bank Aspirex had dipped 20 per cent as compared to less than seven per cent decline in benchmark indices.
Among the individual stocks, L&T Finance Holdings, IFCI, Bajaj Finance, LIC Housing Finance and Aditya Birla Nuvo had rallied more than 10 per cent each on the BSE. However, Muthoot Finance, India Infoline, Magma Fincorp, Toursim Finance Corporation of India and Srei Infrastructure Finance recorded negative returns during the month.
According to reports the RBI is likely to complete initial scrutiny of 26 applications for new bank licences in a month.
