Shares of housing finance companies and public sector banks rallied ahead of Union Budget 2016, to be presented by Finance Minister Arun Jaitley at 11 am today.
Shares of housing finance companies and public sector banks rallied ahead of Union Budget 2016, to be presented by Finance Minister Arun Jaitley at 11 am today. While there are expectations that the budget will hold several important announcements to strengthened government-owned banks in view of the measures they have taken on account of rising non-performing assets (NPAs) and slow down in manufacturing sector.
The government’s move to announce the appointment of former CAG Vinod Rai as chairman of Banks Board Bureau has also added to expectation of revamp in public sector banks.
Housing Finance companies are expected to do well since the government is likely to announce several measures to push low cost housing which would boost the business of housing finance companies.
At 9.55 am, shares housing finance companies such Dewan Housing Finance and GIC Housing Finance were trading 4.53 per cent and 4 per cent up at Rs 159.10 and Rs 195, respectively. LIC Housing Finance were trading 1.85 per cent up at Rs 416.15.
On the other hand, public sector banking majors such as State Bank of India, Bank of Baroda and Punjab National Bank were trading 2.94 per cent, 2.75 per cent and 2.14 per cent up at Rs 160.85, Rs 136.30 and Rs 74.05, respectively.
Dena Bank and Union Bank were trading 2.69 per cent and 2.62 per cent up at Rs 26.70 and Rs 111.50.
The BSE Sensex was trading 70.11 points down at 23,084.