The key Indian equity indices made substantial gains on Wednesday, a day after the government announced its plan to recapitalise pubic sector banks (PSB) and boost the overall infrastructure spend.
The two key indices -- BSE Sensex and NSE Nifty 50 -- touched their new record highs during the intra-day trade. The 30-scrip Sensitive Index (Sensex) of the BSE which opened at 32,995.28 points, provisionally closed 33,042.50 points (at 3.30 p.m.), up 435.16 points or 1.33 per cent from its previous day's close at 32,607.34 points. The index touched 33,117.33 points -- its new intra-day high -- and a low of 32,804.60 points during trade session.
The broader 50-scrip Nifty at the National Stock Exchange (NSE) provisionally closed at 10,295.35 points, up 0.86 per cent or 87.65 points. According to market observers, an exponential rise in scrip of PSBs, a day after the government announced a massive re-capitilsation scheme lifted the key indices. The BSE bank -- BANKEX -- rose exponentially by 1,274.17 points or 4.71 per cent at 3.30 p.m. Dhruv Desai, Director and Chief Operating Officer of Tradebulls, said: "Almost all PSBs' stocks like those of SBI, BoB and PNB rose to touch their new 52-week highs during the intra-day trade." "The rise in PSB stocks not only lifted the sectoral index but also the benchmark indices -- BSE Sensex and NSE Nifty -- to touch their all time highs during the intra-day trade," he added.