LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

Bank Nifty hits record high on FDI buzz; Will RBI play spoilsport?

Brokerage Edelweiss Securities noted the move would raise the probability of inclusion in MSCI and higher weights for private banks, which were near the FII threshold limit.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Bank Nifty hits record high on FDI buzz; Will RBI play spoilsport?
HDFC Bank rallied as much as 3.4 per cent to touch an all-time high of 1,954 on the NSE. Image source: Reuters
Written By: Aprajita Sharma
Updated: Thu, Jan 18, 2018
02:39 pm
ZeeBiz WebDesk
RELATED NEWS
Gold Price Today – Price fall continues, yellow metal cheaper by Rs 80; Silver expensive by Rs 495 when markets opened on Thursday Gold Price Today – Price fall continues, yellow metal cheaper by Rs 80; Silver expensive by Rs 495 when markets opened on Thursday
Anil Singhvi’s Strategy February 25: Day support zone on Nifty is 14900-14975 & Bank Nifty is 36000-36100 Anil Singhvi’s Strategy February 25: Day support zone on Nifty is 14900-14975 & Bank Nifty is 36000-36100
Stocks to buy with Anil Singhvi: Market analyst Vikas Sethi picks Mahindra EPC, Bandhan Bank for big gains Stocks to buy with Anil Singhvi: Market analyst Vikas Sethi picks Mahindra EPC, Bandhan Bank for big gains
Stocks To Buy With Anil Singhvi: Ashish Kukreja suggests Mahindra EPC, Greenlam Industries and Natco Pharma Stocks To Buy With Anil Singhvi: Ashish Kukreja suggests Mahindra EPC, Greenlam Industries and Natco Pharma
NSE trading resumes at 3:45 pm; to go on till 5 pm NSE trading resumes at 3:45 pm; to go on till 5 pm

Banking stocks are the flavour of the market today with the Nifty Bank clutching lifetime high and contributing most to the record gains in Nifty50.

The rally came following the news reports that the government is mulling over raising the FDI limit for private banks and  public sector banks to 100 per cent and 49 per cent, respectively. 

Currently private banks can have 74 per cent FDI under government approval route and 49 per cent under automatic route. For PSU banks, the limit is capped at 20 per cent.

Reacting to the rumours, The Nifty bank index gained as much as 2.3 per cent to hit a record high of 26,887.65, the fourth time it has done so this week.

The rally in banks was also supported by the government’s decision on Wednesday to trim additional market borrowing by 60 per cent for the ongoing fiscal year ending March.

HDFC Bank rallied as much as 3.4 per cent to touch an all-time high of 1,954 on the NSE. The stock also saw its market capitalisation (market-cap) crossing Rs 5 lakh crore mark, the third firm after Reliance Industries (RIL) and Tata Consultancy Services (TCS) to achieve this milestone.

ICICI Bank and State Bank of India also gained 2.9 per cent and 3.5 per cent, respectively.

"If implemented, this would be a significant positive for the banking sector. While not all stocks are at the foreign limit, this would still imply a significant increase in the banking sector weight in MSCI given higher foreign headroom. One of the key potential beneficiaries could be HDFC Bank, which is restricted for foreign buying currently as foreign ownership (74%) is close to the regulatory limit," said Global brokerage Morgan Stanley in a research note.

Brokerage Edelweiss Securities also noted it would raise the probability of inclusion in MSCI and higher weights for private banks, which were near the FII threshold limit.

The brokerage further said the move could provide access to growth capital. Banks, which are in the process of raising capital, will have an option to go for higher proportion of American depository receipts (ADR) issue, Edelweiss said in a note.

"Allowing entry to foreign banks through inorganic route—will act as acquisition trigger for regionally-focussed banks, though there is a cap in shareholding for a single entity and will not be an easy process," it added.

Meanwhile, experts believe investors should stay cautious for even if the reports are true, the process will be long drawn as it will involve parliamentary nod/approvals and big structural change in bank’s ownership, while banking associations may also oppose the move. 

We would also need to see whether the RBI would be comfortable with the proposal. The RBI had previously rejected such a proposal by the government.  

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
MarketsBanking StocksNifty BankHDFC BankFDI limitSBIICICI Bank
RELATED NEWS
Gold Price Today – Price fall continues, yellow metal cheaper by Rs 80; Silver expensive by Rs 495 when markets opened on Thursday Gold Price Today – Price fall continues, yellow metal cheaper by Rs 80; Silver expensive by Rs 495 when markets opened on Thursday
Anil Singhvi’s Strategy February 25: Day support zone on Nifty is 14900-14975 & Bank Nifty is 36000-36100 Anil Singhvi’s Strategy February 25: Day support zone on Nifty is 14900-14975 & Bank Nifty is 36000-36100
Stocks to buy with Anil Singhvi: Market analyst Vikas Sethi picks Mahindra EPC, Bandhan Bank for big gains Stocks to buy with Anil Singhvi: Market analyst Vikas Sethi picks Mahindra EPC, Bandhan Bank for big gains
Stocks To Buy With Anil Singhvi: Ashish Kukreja suggests Mahindra EPC, Greenlam Industries and Natco Pharma Stocks To Buy With Anil Singhvi: Ashish Kukreja suggests Mahindra EPC, Greenlam Industries and Natco Pharma
NSE trading resumes at 3:45 pm; to go on till 5 pm NSE trading resumes at 3:45 pm; to go on till 5 pm

LATEST NEWS

7th Pay Commission: Big bonanza on Dearness Allowance (DA), Dearness Relief (DR) for Central Government employees, pensioners coming before Holi?

Gold Price Today – Price fall continues, yellow metal cheaper by Rs 80; Silver expensive by Rs 495 when markets opened on Thursday

7th Pay Commission Latest News: How pensioners will benefit from DA, TA, salary hike for central government employees?—EXPLAINED

3rd Test: Patel takes 6 wkts as India bowl out England for 112

HDFC Share price: Jefferies maintain Buy rating on HDFC with a target price of Rs 3340

Every family to get insurance benefit of Rs 5 lakhs under Universal Healthcare scheme in Rajasthan

50 pc if Volvo Cars to be EV by 2025

Attention NEET 2021 candidates! Check expected exam date

7th Pay Commission latest news: Central government employees alert! Your DA, PF, Gratuity, other allowance may change next fiscal

EPFO Members Alert! EPF contribution rule may change if government accepts this labour union's demand

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved