Banking stocks, expectations of healthy Q2 results lift indices

5 Dariya News

Mumbai 24-Oct-2017

Healthy off-take in banking sector stocks over expectations of further recapitalisation measures pushed the key Indian equity indices higher on Tuesday.According to market observers, other factors like expectations of positive quarterly results and a rise in global markets enhanced investors' risk-taking appetite.The 30-scrip Sensitive Index (Sensex) edged higher by 101 points or 0.31 per cent.The wider Nifty 50 of the National Stock Exchange (NSE) gained 22.85 points or 0.22 per cent at 10,207.70 points.The Sensex of the BSE, which opened at 32,619.26 points, closed at 32,607.34 points, higher by 100.62 points or 0.31 per cent from Monday's close at 32,506.72 points.The Sensex touched a high of 32,670.37 points and a low of 32,502.08 points during the intra-day trade."Markets ended with modest gains on Tuesday after bouncing back from Nifty lows of 10182. Positive global cues supported gains on the domestic bourses. Stocks of PSU banks rose on hopes of early recapitalisation of banks," Deepak Jasani, Head - Retail Research, HDFC Securities, told IANS."Technically, with the Nifty bouncing back after the recent weakness, the bulls seem to be making a comeback." 

Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS: "Benchmark indices gained ahead of October F&O expiry and Infosys results.""Sensex and Nifty rose on Tuesday for the second consecutive session as expectations have built up on announcement of healthy quarterly results." In terms of investments, provisional data with the exchanges showed that foreign institutional investors (FIIs) sold scrips worth Rs 1,306.76 crore while domestic institutional investors (DIIs) purchased stocks worth Rs 592.28 crore.On the currency front, the rupee remained flat. It inched lower by 2 paise to close at 65.06 against the US dollar from its previous close at 65.04.Sector-wise, the S&P BSE banking index surged by 167.61 points, followed by oil and gas index by 101.48 points and metal index by 80.07 points.On the other hand, the S&P BSE IT index fell by 79.74 points, consumer durables index by 57.58 points and automobile index by 49.61 points.Major Sensex gainers on Tuesday were: Asian Paints, up 4.10 per cent at Rs 1,220.50; State Bank of India, up 3.56 per cent at Rs 254.50; NTPC, up 2.83 per cent at Rs 181.65; ONGC, up 2.56 per cent at Rs 176; and Hindustan Unilever, up 1.81 per cent at Rs 1,271.25.Major Sensex losers were: Tata Motors DVR, down 1.66 per cent at Rs 230.90; Tata Motors, down 1.54 per cent at Rs 415.80; Infosys, down 1.37 per cent at Rs 926.75; Sun Pharma, down 1.07 per cent at Rs 534.45; and Mahindra and Mahindra, down 1.06 per cent at Rs 1,352.50.