Bank stocks gain up to 4.3%
Bank stocks on Wednesday ended with up to 4.3 percent gains following September trade deficit narrowing to the lowest level in 30 months.
Mumbai: Bank stocks on Wednesday ended with up to 4.3 percent gains following September trade deficit narrowing to the lowest level in 30 months.
Shares of Bank of India surged 4.31 percent, while Yes Bank gained 3.78 percent, Kotak Mahindra Bank (3.69 percent), Federal Bank (2.70 percent), HDFC Bank (2.57 percent) and ICICI Bank (1.34 percent).
Led by the gains in these stocks, the BSE banking index rose by 1.88 percent to settle at 11,770.50.
"Trade deficit for September came to a more than 2 years low levels at USD 6.7 billion. This can be beneficial for the Indian currency as well as controlling CAD. Financial and banking stocks recovered from lower levels and showed strength after this news," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Limited.
Rising exports and declining imports in September narrowed the trade deficit to a 30-month low of USD 6.76 billion.
The previous low for the trade deficit was USD 3.8 billion in March 2011. The gap was USD 10.9 billion in August.
Exports and imports in September stood at USD 27.68 billion and USD 34.4 billion, respectively.