Sensex ends 409 points up, Nifty at 8,533; banking stocks rally on capital boost, Q1 show

NEW DELHI: The S&P BSE Sensex closed the session up 409.21 points, or 1.48 per cent, at 28,114.56. The sentiment was lifted by a surge in banking shares on better-than-expected June quarter results by ICICI Bank and the government's plan to infuse Rs 70,000 crore in PSBs over four years.

The braoder 50-share Nifty index jumped 111.05 points, or 1.32 per cent, to settle the day at 8,532.85. India VIX, a gauge to measure market volatility, lost over 5 per cent to close at xx.

25 of the 30 Sensex stocks ended the day in the green.

SBI surged 5 per cent to remain the top Sensex gainer for the day. Coal India, Dr Reddy's and Lupin were among other key gainers from the index.

The BSE Midcap index rose 1.10 per cent, while the BSE Smallcap index was up 0.90 per cent.

According to reports, the government has proposed to infuse Rs 25,000 crore in the ongoing financial year to boost the PSU banks' reserves, in a total of three tranches.

A total of 40 per cent of the amount will be kept for top six banks State Bank of India, Bank of Baroda (BoB), Punjab National Bank (PNB), Bank of India (BOI), Canara Bank, and IDBI Bank.

Canara Bank and Union Bank surged 7 per cent each, followed by SBI, BoI and Allahabad Bank, which gained between 4.5 per cent and 6.5 per cent on the NSE.

Syndicate Bank, OBC, BoB, and Andhra Bank were up between 2.7 per cent and 4 per cent.

Among other stocks that were in limelight, ICICI Bank surged nearly 6 per cent in trades after posting a healthy set of June quarter numbers. Dr Reddy's Labs hit its all-time high during the intraday trades on better-than-expected quarterly earnings.

Hindustan Copper shot up over 9 per cent after the government approved a proposal seeking 15 per cent divestment in the state-run firm.

Major European stocks were mixed. Britain's FTSE 100 index lost 0.2 per cent, France's CAC 40 was up 0.4 per cent, while German DAX fell 0.1 per cent.

Earlier in the day, Asian markets ended on a mixed note. China’s Shanghai Composite index closed the session down 1.13 per cent, or 42.o4 points, at 3,663.73. Japan's Nikkei ended the day, o.3 per cent up, or 62.41 points at 20,585.24, while Hong Kong's Hang Seng gained o.56 per cent, or 138.30 points to settle at 24,636.28.

“Nifty is expected to trade with positive bias as Union Cabinet has approved amendments to the goods and services tax (GST) bill to compensate states for revenue loss for five years on introduction of the uniform nationwide indirect tax regime, as has been suggested by Rajya Sabha Select Committee,” said Vivek Gupta, CMT - Director Research, CapitalVia Global Research Ltd.

“On the upside, if Nifty manages to break and sustain above its important resistance level of 8,550 on closing basis, further upside movement can be seen till 8,670 which was its recent high,” Gupta said.


BUZZING STOCKS

JM Finance shot over 8 per cent in intraday trade.

Dr. Reddy's rose over 4 per cent in intraday trade.

HCC surged over 10 per cent in intraday trade.

Astra Micro gained nearly 6 per cent in intraday trade. Earlier in the day, the scrip had plunged over 7 per cent.

Glenmark Pharma gained nearly 7 per cent in intraday trade.

HSIL fell 10 per cent in intraday trade.

Gujarat Pipavav made a smart recovery to add over 2 per cent after it slumped over 7 per cent in intraday trade.

Gati slipped over 9 per cent in intraday trade post Q1 reults.

Sun TV rallied about 12 per cent in intraday trade.

Force Motors surged nearly 7 per cent in intraday trade.

Kotak Mahindra Bank cracked over 4 per cent in intraday trade.

Sona Koyo spiked over 8 per cent in intraday trade.

Alembic Pharma crumbled over 11 per cent in intraday trade.

WHAT TOP EXPERTS SAY

Emerging markets have still not completely factored in a Fed rate hike: Swiss Asia Capital

Kotak maintains 'Reduce' on Colgate, sets target of Rs 2,000

Goldman Sachs raises target of Petronet to Rs 220 from Rs 216, maintains 'Buy'

Nifty unlikely to fall below 8,320: Mitesh Thacker

8,530-8,540 range holds the key for Nifty: Sandeep Wagle

MARKETS THROUGH THE DAY

Markets @ 2:00

Sensex: 28,114, up 409 points; Nifty: 8,536, up 114 points

Markets @ 1:15

Sensex: 28,035 up 331 points, Nifty: 8,511 up 90 points

Top Gainers

ICICI BANK (5.3%), SBI (4.3%), HERO MOTOCORP (3.4%), LUPIN LTD (3.4%), M&M (3.1%)

Top Losers

BHEL (-1.7%), HIND. UNILEVER (-0.5%), HDFC BANK (-0.4%), INFOSYS LTD (-0.3%), HDFC (-0.3%)

Markets @ 12:00

Sensex: 28,205, up 319 points; Nifty: 8,508, up 87 points

Top Gainers

M&M (3.9%), HERO MOTOCORP (3.4%), DR. REDDYS LAB (3.3%), LUPIN LTD (3.3%), SBI (2.7%),

Top Losers

RELIANCE IND. (-0.2%), BHEL (-0.1%)

Markets @ 11:00

Sensex: 28,012, up 306 points; Nifty: 8,502, up 81 points

Top Gainers

M&M (4.0%), DR. REDDYS LAB (3.6%), LUPIN LTD (3.4%), HERO MOTOCORP (2.6%), COAL INDIA (2.5%)

Top Losers

RELIANCE IND. (-0.4%)

Markets @ 10:20

Sensex: 27,896, up 190 points, Nifty: 8,469 up 47 points

Top Gainers

DR. REDDYS LAB (3.0%), HERO MOTOCORP (2.1%), COAL INDIA (2.1%), M&M (1.9%), VEDANTA LTD (1.8%)

Top Losers

RELIANCE IND. (-0.5%), INFOSYS LTD (-0.4%), BHEL (-0.3%), HIND. UNILEVER (-0.3%)