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PSU bank stocks rally

Capital Market 

Key indices are trading sideways with small gains in morning trade. The Nifty hovered below the 15,250 mark. At 10:28 IST, the barometer index, the S&P BSE Sensex, was up 27.12 points or 0.05% at 51,730.07. The Nifty 50 index gained 21.35 points or 0.14% at 15,230.35. PSU bank stocks are trading with sharp gains.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.92% while the S&P BSE Small-Cap index gained 1.15%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1649 shares rose and 830 shares fell. A total of 131 shares were unchanged.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 109,885,555 with 2,429,669 deaths. India reported 137,342 active cases of COVID-19 infection and 156,014 deaths while 106,56,845 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Primary Market:

The initial public offer (IPO) of RailTel Corporation of India received bids for 41.33 crore shares as against 6.11 crore shares on offer on Thursday (18 February 2021), according to the stock exchange data at 10:10 IST. The issue was subscribed 6.76 times. The issue opened for bidding on Tuesday, 16 February 2021, and it will close today, 18 February 2021. The price band for the IPO is set at Rs 93-94 per share. An investor can bid for a minimum lot of 155 equity shares and in multiples thereof. The IPO comprises an offer for sale (OFS) of 8,71,53,369 equity shares by the Government of India. The company will not be directly receiving any proceeds from the offer and all the offer proceeds will be received by the selling shareholder.

Buzzing Index:

The Nifty PSU Bank index surged 3.8% to 2,544, extending its winning run to fifth consecutive trading session. The index has added 14.58% in five days.

Central Bank of India (up 20%), Indian Overseas Bank (up 19.75%), Bank of India (up 10%), Bank of Maharashtra (up 9.85%), UCO Bank (up 6.67%), Union Bank of India (up 6.3%), Indian Bank (up 5.74%) and Punjab National Bank (up 2.16%) were top gainers in PSU banking space.

PSU banks were in demand after the media reported that the government is likely to bring amendments to two legislations later this year to facilitate privatisation of public sector banks. Earlier this month, Finance Minister Nirmala Sitharaman while presenting Budget 2021-22 announced privatisation of Public Sector Banks (PSBs) as part of disinvestment drive.

Stocks in Spotlight:

Jubilant Foodworks rose 1.44%. The board of Jubilant FoodWorks appointed Ashish Goenka as the chief financial officer (CFO) and key managerial personnel (KMP) of the company with effect from 17 February 2021. Ashish Goenka will lead Finance & Accounts, Financial Planning & Analysis, Management Assurance, Secretarial & Legal functions of Jubilant Foodworks. Goenka is a qualified Chartered Accountant, Company Secretary and MBA. He has 18 years of experience in finance & strategy with FMCG & Telecom Industry.

Dish TV India jumped 4.29% to Rs 12.4 after the company said that its board approved raising upto Rs 1,000 crore through permissible modes in one or more tranches.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Thu, February 18 2021. 10:29 IST