Benchmark indices opened at record high with Nifty crossing 10,300 following a mega recapitalisation package for banks and a Rs 7 lakh crore infra booster ahead of October F&O expiry.
With economic revival being big on the agenda, the government on Tuesday unveiled a Rs 2.11-lakh crore support for public sector banks (PSBs), struggling with mounting bad loans, in order to spur “genuine” infrastructure lending for upcoming mega projects.
The government will pump in Rs 1.35 lakh crore of this recapitalisation through bonds. Another Rs 76,000 crore will come from budgetary support and banks tapping the market.
The sentiment, however, may be dampened after Infosys cut its revenue guidance to 5.5%-6.5% in constant-currency for FY18, as against its April forecast of 6.5%-8.5%. In another development, the company's co-founder NR Narayana Murthy expressed his disappointment after the company’s board led by Nandan Nilekani gave a clean chit to former chief executive Vishal Sikka over allegations of governance failure in the Panaya acquisition.