Bankex at record high

The BSE has soared to a record high today led mainly by banking stocks. The BSE Bankex rose to a record high today, up 2.5%, with all the ten banking stocks in this Index on te “advance” mode. HDFC Bank is the top gainer, contributing over 173% to the index, followed by ICICI bank at 106% and IndusInd Bank at 65%. SBI, which is the volume topper, contributed 52% to the current soar in the index.

There is unconfirmed news that the Govt is thinking of allowing 100% FDI in the private Indian banking sector. Even for PSU banks, where the current FDI limit if 20% could get raised to a permissible limit of 49%.

In private sector banks, currently 49% FDI is through the automatic route – no Govt permission is required and 74% on Govt approval; this could now be raised to 100%.

There is no confirmation from any Govt official about this news, yet the market has chosen to celebrate big time!