Nifty bank index hits record high, posts biggest one-day gain ever; SBI hits 52-week high

Buoyed by exit poll results, shares of public sector banks witnessed strong buying on Monday with Nifty Bank index rallying over 4 per cent in intra-day on the National Stock Exchange (NSE) amid hopes that a stable and decisive government will be formed at the Centre.

The Nifty Bank index hit a record high of 30,827.85 during the day's trade, surpassed previous high of 30,669 and posted highest-ever one-day gain of 1220 points. The index closed trade at 30,759.70 up by 4.45 per cent. Nifty PSU Bank and Nifty Private Bank indices ended 7.78 per cent and 4.21 per cent, respectively.

State Bank of India, the country's largest lender, gained over 8 per cent on heavy buying, followed by Bank of India, Indian Bank, Bank of Baroda, Canara Bank, Allahabad Bank and Syndicate Bank, which rallied between 7.5 per cent-10.5 per cent on the NSE.

The index heavyweight SBI share price surged as much as 8.31 per cent to touch 52-week high of Rs 345.80 on the National Stock Exchange, before closing at Rs 345.80. The scrip opened higher at Rs 332 against previous close level of Rs 319.25, in line with benchmark indices.

Also Read: Tsunamo effect! Exit polls help bring back Rs 4.28 lakh crore in share market

On the Bombay Stock Exchange, shares of SBI closed trading at Rs 342.85 apiece, up 7.49 per cent, against previous closing price. There was a spurt in volume trade as 29.85 lakh shares changed hands over the counter compared to two-week average of 15.50 lakh shares, BSE data showed.

Global rating agency Morgan Stanley has assigned 'overweight' rating on the SBI with a target price of Rs 400 after the country's largest lender, made a profit of Rs 862 crore in the financial year 2018-19 after reporting losses in the last two years, helped by higher net interest income and improvement in asset quality.

Industry expects opined that most of the PSU banks to swing back to profitability during the financial year 2019-20, given the improvement in the asset quality and balance sheet.

Meanwhile, the BSE Sensex closed at 39,352, up 1421.90 points or 3.75 per cent, and the NSE Nifty extended gains to close at 11,832.70, up 425.55 points or 3.73 per cent on Monday. The indices closed within kissing distance of all time highs in trade today after exit polls predicted a landslide victory for the Narendra Modi led NDA government.

Edited by Chitranjan Kumar

Also Read: Share Market updates: Sensex, Nifty close within kissing distance of all-time highs; IndusInd Bank, SBI, Tata Motors top gainers