NIFTY Bank index closed 0.35% down or around 142 points to 40,513 points on Wednesday. The finance minister Nirmala Sitharaman presented the Union Budget 2023 in the parliament today. This comes as a surprise because the banking majors had surged during the early hours of trading.
In early morning trades, the benchmark bank index jumped 450 points led by gains in ICICI Bank, HDFC Bank, Bank of Baroda, Kotak Mahindra and Axis Bank shares.
The market pundits reasoned the rise in bank stocks came because:
- Adani Enterprises successfully concluded its FPO by getting a 100% subscription
- Expectations of credit growth boost in Union Budget 2023.
In her budget speech, the honourable Finance Minister announced a slew of initiatives to boost the banking and financial services sector. The agricultural credit target limit has been increased to Rs 20 lakh crore.
Furthermore, various other steps were proposed to expand credit and financial inclusion. Sitharaman said that National Financial Registry will be set up. Additionally, an enhanced focus on digital KYC to support the higher distribution of financial services.
However, Dalal Street did not take the proposed steps very positively. Except for HDFC Bank, ICICI Bank and Kotak Mahindra Bank, other bank stocks fell sharply.
Bank of Baroda (down 7.89%), Punjab National Bank (down 6.07%), State Bank of India (down 4.72%), IndusInd Bank (down 3.80%), and Bandhan Bank (down 2.93%) all closed in the red.
Written by Vikalp Mishra
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
