Stock market update: PSU bank stocks rise; BoB, BoI up 3%

NEW DELHI: Most PSU bank stocks, including Bank of Baroda (up 3.44 per cent), Bank of India (up 2.91 per cent) and Canara Bank (up 2.41 per cent) were trading with decent gains during the first half of Thursday's trading session.

PSU bank stocks are on the upward trajectory, buoyed by the reports of capital infusion.

The finance ministry has finalised capital infusion of Rs 11,336 crore in five PSBs to help them meet their interest payment commitments without impacting their regulatory capital requirements.

Besides, the ministry is assessing the needs of 2-3 more banks and fund infusion in them would be done by the end of the second quarter of the current fiscal.

The Nifty PSU Bank index was trading 1.14 per cent up at 2,807 around 11:25 am.

Shares of Union Bank of India (up 1.77 per cent), Oriental Bank of Commerce (up 1.47 per cent), Punjab National Bank (up 1.26 per cent), Allahabad Bank (up 1.22 per cent), Indian Bank (up 1 per cent), Syndicate Bank (up 0.90 per cent), State Bank of India (up 0.50 per cent) and IDBI Bank (up 0.35 per cent) too were in the green.

Benchmark NSE Nifty50 index was up 4 points at 10,985, while the BSE Sensex was up 85 points at 36,458.

Among the 50 stocks in the Nifty index, 24 were trading in the green, while 26 were in the red.

Vedanta, Titan Company, Bharti Airtel, Tata Motors and Mahindra & Mahindra were among the top gainers in the Nifty pack of stocks.

On the contrary, Bharti Infratel, Hindalco Industries, HPCL, Bajaj Finance and UPL were among the top losers in the Nifty index.