The move boosted the hopes that a reduction in bad debt will start to quicken, hence the rally.
The domestic banking system has been grappling with non-performing assets (NPA) worth over Rs 10 lakh crore. Last week, RBI identified 12 biggest NPA accounts to be taken to the bankruptcy courts, as they have failed to repay their loan amounts.
The NSE’s Nifty50 rose 70 points to end the session at 9,657, with 33 constituents settling in the green.
Here’s a look at everything that made news on Dalal Street during the day:
CDSL IPO a mega hit: The initial public offering of the BSE-backed CDSL got fully subscribed on the first day of bidding itself. The IPO received bids for 2,61,69,500 shares against a total issue size of 2,48,27,046 shares, as per data available with the stock exchanges till 2.45 pm. The company on Friday raised Rs 154.07 crore from 15 anchor investors. The price band for the share sale was fixed at Rs 145-149. Brokerage houses are bullish on the public offer of the depository.
Dirty Dozen shares sink: Shares of the 12 defaulting companies, identified by the Reserve Bank of India for speedy debt recovery action, dipped sharply, but Jyoti Structures was the only exception with a sharp 20 per cent rise in share price. Shares of Lanco Infratech and Amtek Auto fell almost 20 per cent each while those of Bhushan Steel tanked 16 per cent on BSE.
Nifty Bank scales fresh all-time high: The Nifty Bank index crossed the 23,800 mark for the first time on Monday after the central bank asked banks to start bankruptcy proceedings against 12 large loan defaulters, raising hope that reduction of bad debt will start to quicken. Private sector lenders HDFC Bank, ICICI Bank, IndusInd Bank, Kotak Mahindra Bank and Federal Bank hit a fresh 52-week high during the trade. The index closed the session at 23,742 with eight constituents ending in the green.
Metal stocks shone: Metal stocks emerged top sectoral gainer, with Tata Steel, Hindalco and Vedanta being the major contributors to the gain. The S&P BSE Metal index jumped nearly 2 per cent to close at 11,325.