Sensex rises 300 points, Nifty above 10600 led by banks

Sensex and Nifty opened Wednesday with minor gains led by financials. While BSE Sensex opened higher 128.23 points, up 0.36 per cent, to 35278.20, Nifty 50 tested 10,600-level opening at 10585.80, up 0.35 per cent. 

At 10 am Sensex is trading higher by 320.49 points at 35,470, Nifty is higher by 100.50 points at 10,649.

Shares of banks and non-banking finance companies (NBFCs) outperformed benchmark indices, hoping that the new RBI governor might re-examine the demand for an easier prompt corrective action (PCA) framework and a special liquidity window.

Meanwhile, Rupee extended its losses against the US dollar after ruling Bhartiya Janata Party (BJP) suffered a setback in the three state elections, and also after the government announced a former bureaucrat as a central bank chief. At 9.15am, the rupee was trading at 72.10 a dollar, down 0.33% from its Tuesday’s close of 71.87. The currency opened at 72.02 a dollar. The 10-year government bond yield stood at 7.475% from its previous close of 7.528%.