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Rediff.com  » Business » Markets extend gains; PSU banks, metal stocks shine

Markets extend gains; PSU banks, metal stocks shine

February 21, 2019 17:20 IST

Tata Motors was the biggest gainer in the Sensex pack, rallying 2.94 per cent. It was followed by Vedanta, Bajaj Finance, Sun Pharma, ONGC, ICICI Bank, Bajaj Auto, Tata Steel, RIL, HDFC duo, L&T and SBI, rising up to 2.78 per cent.

Equity indices closed higher for the second straight session on Thursday, led by metal, pharma and banking stocks amid widespread buying by foreign and domestic institutional investors.

Global markets were mixed following release of Federal Reserve minutes which showed that the US central bank would be patient on interest rate hikes.

 

After a choppy start, the 30-share BSE Sensex settled 142.09 points, or 0.40 per cent higher at 35,898.35. The broader NSE Nifty gained 54.40 points, or 0.51 per cent, to 10,789.85.

Tata Motors was the biggest gainer in the Sensex pack, rallying 2.94 per cent.

It was followed by Vedanta, Bajaj Finance, Sun Pharma, ONGC, ICICI Bank, Bajaj Auto, Tata Steel, RIL, HDFC duo, L&T and SBI, rising up to 2.78 per cent.

On the other hand, Yes Bank, Coal India, Infosys, IndusInd Bank, Kotak Bank, Axis Bank, ITC and TCS slipped up to 1.33 per cent.

Shares of public sector banks (PSBs) jumped up to 19 per cent after the government Wednesday announced fund infusion of Rs 48,239 crore in 12 such lenders.

Corporation Bank zoomed 19.02 per cent, UCO Bank 8.75 per cent, United Bank 7.19 per cent, Central Bank of India 5.50 per cent, Allahabad Bank 5.34 per cent, Andhra Bank jumped 5.22 per cent, Bank of Maharashtra 3.96 per cent, Syndicate Bank 3.59 per cent, and Punjab National Bank ended 2.95 per cent higher.

Sectorally, the BSE metal index, consumer durables, healthcare, finance and bankex rose up to 1.14 per cent; while IT and teck indices ended with losses.

Broader indices outperformed the benchmark.

The BSE Midcap index climbed 0.88 per cent while the small-cap gauge rose 1.07 per cent.

"Market extended gains as investor sentiment has been boosted owing to recapitalisation of PSU banks and Fed's affirmation of slow pace in rate hikes.

“Accumulation is seen on heavyweights after recent fall while mid and small cap outperformed.

“Undercurrent in the market is yet to stabilise due to caution on global trade and growth while falling interest rates and reforms by government will give impetus to consumption-led stocks," said Vinod Nair, head of research, Geojit Financial Services.

Foreign institutional investors (FIIs), who had been heavy sellers over the past few sessions, net bought equities worth Rs 713.47 crore on Wednesday, while domestic institutional investors bought shares to the tune of Rs 113.27 crore, provisional data showed.

Photograph: Shailesh Andrade/Reuters

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