In past two trading sessions, Nifty PSU Bank index surged 5.6% after the government cut additional borrowing requirement to Rs 200 billion from Rs 500 billion notified earlier, helping ease worries surrounding widening fiscal deficit.
YES Bank, HDFC Bank, IndusInd Bank, IDFC Bank, Federal Bank, Punjab National Bank (PNB), State Bank of India (SBI), ICICI Bank and Axis Bank from the Nifty Bank index were up in the range of 1% to 4% on NSE.
Among the individual stocks, HDFC Bank hits a new high of Rs 1,945, up 2.9% on NSE. ICICI Bank hit a fresh 52-week high of Rs 353, up 3%, extending its 11% surge in past four trading days. The stock is trading close to its record high of Rs 358, touched on January 28, 2015 in intra-day trade.
In a press release, the finance ministry has now said, “Upon a review of trends of revenue receipts and expenditure pattern, it has been assessed that additional borrowing of only Rs 200.00 billion of government securities would be adequate to meet financing needs.”
The statement said the government did not accept borrowings of Rs 150.00 billion in the last three auctions. The remaining Rs 150.00 billion would be reduced from the notified borrowing programme of the ensuing weeks, it said.
A source in the government that Business Standard spoke to said, “The disinvestment target for the year is expected to overshoot the Budget Estimate by quite a margin. Things are looking up on the direct taxes front as well. The dividend target from state-owned companies will also be met. But there are expectations of a shortfall in the collections from the GST and spectrum sales.” CLICK HERE TO READ FULL REPORT