Budget 2021 boosts financials; ICICI, IndusInd, IDBI Bank jump over 10%

Finance Minster made various announcements including increase in FDI limit in the insurance sector, recapitalisation and privatisation of select PSU banks

Shares of financials including banks, non-banking housing finance companies (NBFCs), housing finance, and insurance companies were in focus on Monday as they surged up to 20 per cent as Finance Minster Nirmala Sithraman, while presenting the Union Budget for financial year 2021-21, made various announcements including increase in foreign direct investment (FDI) limit in the insurance sector, recapitalisation and privatisation of public sector banks (PSBs). That apart, strong Q3 performance of certain individual banks for the quarter ended December 2020 (Q3FY21) also boosted sentiment.

ICICI Bank, IndusInd Bank, Shriram City Union Finance, IDBI Bank, and Bajaj Finserv rallied more than 10