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Indian bank stocks rose on speculation of higher foreign investment limits, though no decision has been made.
Indian public sector bank stocks rose on October 28 amid speculation that the government may increase foreign investment limits from 20% to 49%, potentially attracting billions in foreign capital.
The Nifty PSU Bank Index gained over 1% as investors reacted to reports of ongoing talks between the Finance Ministry and RBI.
Major banks like State Bank of India and Union Bank saw gains, while Indian Overseas Bank was an exception.
Analysts estimate that raising the cap could bring up to $3.98 billion in passive inflows from global index funds, with stock prices potentially rising 20% to 30% on anticipation alone.
However, no official decision has been made, and implementation would take several quarters.
Las acciones de los bancos indios subieron debido a la especulación de mayores límites de inversión extranjera, aunque no se ha tomado ninguna decisión.