The
The government has now introduced a composite percentage cap on the extent foreigners can own Indian shares. Earlier, there were separate sub-limits which would cater to FDI, FII, NRI and other non-Indian holdings within the overall cap which was different for each sector. For instance, in banking 74 percent equity in an Indian private bank can be owned by foreigners. Within the 74 percent, the foreign institutional limit was capped at 49 percent. Now these artificial sub-limits have been removed by the finance ministry.
Naturally, the Bank Nifty was star of the day, surging 1.9 percent to 19,176 points and closing at its highest level since March 19. Ten out of 12 stocks comprising the Index rose. Within the gainers, HDFC Bank and Kotak Bank hit fresh highs.
Meanwhile, the Nifty rose 1 percent to 8,608 points, rising for the second day and closing at the day's high yet again. Top gainers included Axis Bank, Kotak Bank and Yes Bank : all major beneficiaries of the government's fresh interpretation. Other stocks that rose included BPCL and Tech Mahindra. On the losers side were Bank of Baroda, Vedanta and Wipro. The Advance-Decline Ratio on the Nifty stood at 38:11 with the Index overcoming a crucial resistance at 8,560 levels.
On the Bombay Stock Exchange, the
Both the Sensex and the Nifty closed at their highest level since April 17, climbing a 3-month peak.
Overall, the bulls remained in control of the wider market where 1,552 stocks gained while 1,250 shares lost ground on the BSE.
In the broader market, Reddy's, Coal India, HPCL and IOC hit fresh highs.
(Image credit: Indiatimes)