Banks Extend Gains After Government Cuts Borrowing Plan
Shares of government and private sector lenders were trading higher after the government cut its first half borrowing plan to 48 percent of its budgeted borrowings.
Gauge of state-run lenders — Nifty PSU Bank index rose 1.4 percent and the gauge for banks — Nifty Bank index gained 0.87 percent.
Banks stand to gain from the government’s move as they are among the largest buyers of bonds issued by the government.