Oct 25: The Indian stock markets have attained new highs as government announced fresh initiatives to boost the economy by recapitalisation of ailing banks and fresh investments in infrastructure sector.
BSE Sensex crossed 33000 mark to hit 33089.8 mark in early hours of trade while Nifty rose sharply by 100 points to cross 10,300 levels.
The top gainers were PSU banking stocks which are going to be the major beneficiaries of government stimulus packages. SBI rose 24%, PNB 21% and Bank of Baroda 20%.
The government had announced on Tuesday a Rs 2.11 lakh crore package for ailing public sector banks and a mega Rs 6.9 lakh crore road building programme aimed at boosting growth and creating jobs. Government will provide a budgetary support of Rs 18000 cr for banks and Rs 1.35 lakh cr recapitalisation bonds will be issued.
Although the stimulus package helped create a rally in PSU banks, some private sector bank stocks fell -HDFC Bank and Kotak Mahindra Bank by 2-3%.
Stocks in cement, construction, cement, engineering, metals and other sectors are expected to perform better on the optimism seen after the government initiatives were announced.