Axis Bank up over 9%
Today morning, almost all the private sector bank stocks are in the top gainers list, led by Yes Bank. This mainly after the new RBI governor took charge and announced that he plans to issue new banking licenses by January 2014 and his overall stance assured one and all that he will soon work on bringing in reforms, infusing a sense of optimism. Mr.Rajan announced a slew of measures, including more trade settlement in rupees to rescue the battered financial markets. He also stated that unlike his predecessor, he might shift his focus from inflation to growth. He als rescheduled his first Credit Policy to 20th September, well after the Fed meeting on 18th Sept.
Axis Bank is also a big gainer. The stock which had hit a new 52-week low yesterday at Rs.764 is up currently over 9% at Rs.874.90.
The stock is after the RBI, with immediate effect, lifted restrictions placed on foreign institutional investors (FIIs) buying shares in the Bank as the overall foreign share holding fell below the prescribed limit of 49%. Total foreign holding in Axis Bank was 48.96% as at 30 June 2013, of which 40.70% was held by FIIs.