The Sensex and the Nifty surged nearly two per cent on Monday, recovering from recent losses with the 30-share index posting its biggest single-day gain in two and a half months as lenders such as the State Bank of India (SBI) rose after the Reserve Bank of India (RBI) relaxed provisioning rules against bad loans.
The Reserve Bank on Monday said it would allow banks to set aside up to 50 per cent of floating provisions from 33 per cent earlier.
Floating provisions are the amount that banks set aside that are above the mandatory provisioning requirement against bad loans established by the central bank. Utilisation of countercyclical provisioning buffer/floating provisions under this measure would be over and above the utilisation of countercyclical provisioning buffer/ floating provisions as permitted...on Framework for Revitalising Distressed Assets in the Economy —Refinancing of Project Loans, Sale of NPA and Other Regulatory Measures," the RBI added.
The announcement late in the session spurred additional gains in shares, helping the 50-share Nifty snap an eight-session losing streak in which the gauge lost 4.4 per cent, compared with a 1.5 per cent gain in the MSCI Asia Pacific Ex-Japan index.
The Nifty closed up 1.81 per cent at 8,492.30, its biggest single-day gain since February 27. The BSE Sensex ended higher 1.88 per cent at 27,975.86, its best daily gain since January 15.
The general sentiment was bullish as markets across the region were trading higher with China stocks nearing a seven-year peak on hopes for more infrastructure spending and policy stimulus, while oil prices suffered further from excess supply.
via Business - Google News http://ift.tt/1FbKBR9
Put the internet to work for you.
No comments:
Post a Comment