BSE Sensex 435 points up, Nifty 87 points up

BSE Sensex and NSE Nifty began on a positive note on Wednesday after the government announced a Rs 2.11-lakh-crore bank recapitalization plan through the issuance of recap bonds and budgetary support.

BSE Sensex zoomed over 432 points or 1.33 percent at 33,039.97 while the wider Nifty was up by over 115 points or 1.13 percent at 10,322.85.

The Indian rupee opened at 65.14 against dollar, down 7 paise compared with 65.0675 level in the previous session.

Sensex ended 435 points up or 1.33 percent at 33,042.50 while the wider Nifty was up by over 87 points or 0.86 percent at 10,295.35. Sensex surged over 500 points to hit a new high of 33,117 while the Nifty surged to a record 10,340. Public sector banks led the rally in banking stocks, with State Bank of India (SBI) surging 20 per cent and Punjab National Bank (PNB) jumping 33 per cent.

Bankers welcomed the public sector unit (PSU) banks recapitalisation program that was announced by the government on Tuesday. Bankers are of the opinion that the move would be significantly positive for banks to address their provisioning as well as growth capital requirements. Union Finance Minister Arun Jaitley announced PSU banks recapitalisation program of Rs 2.11 lakh crore.