Banking stocks buoy mkts on renewed optimism

Mumbai: Benchmark indices-- Sensex and Nifty -- rebounded nearly one per cent on Tuesday amid firm trends in global equities and buying in index major Reliance Industries (RIL) and banking stocks. The 30-share BSE Sensex climbed 445.73 points or 0.77 per cent to settle at 58,074.68 points. During the day, it rallied 504.38 points or 0.87 per cent to 58,133.33 points. The broader NSE Nifty advanced 119.10 points or 0.70 per cent to settle at 17,107.50 points.

"Global markets recovery ushered in gains in domestic equity indices as both the benchmarks ended above the psychological levels on the back of strong gains in financials. However, the optimism may face hurdles as the recent turmoil in large banks in the US and Europe has shaken investors' sentiment. The US FOMC meeting on Wednesday on interest rate decision would be keenly eyed as any hike surpassing street expectations could unsettle investors. Falling crude oil prices at a faster pace is raising concerns over the weakening global economic health," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.

"Gaining buoyancy from a slew of measures to shield the banking sector, global markets witnessed recovery ahead of the US Fed policy announcement on Wednesday. The momentum was passed onto domestic equities, which were led by large-cap banks," said Vinod Nair, Head of Research at Geojit Financial Services. Foreign Portfolio Investors offloaded equities worth Rs2,545.87 crore on Monday, according to exchange data.

In the broader market, BSE midcap gauge climbed 0.66 per cent and smallcap index gained 0.50 per cent. Among indices, consumer durables jumped 1.57 per cent, energy zoomed 0.99 per cent, power rallied 0.74 per cent, commodities jumped 0.71 per cent and telecommunication (0.63 per cent). FMCG, IT, realty and teck were the laggards.

Among the Sensex stocks, Reliance Industries climbed the most by 3.11 per cent, ending its eight-day slide. Bajaj Finance, Titan, Axis Bank, ICICI Bank, Bajaj Finserv, IndusInd Bank, UltraTech Cement, Larsen & Toubro, HDFC Bank, HDFC and Kotak Mahindra Bank were among the other major winners. Power Grid, Hindustan Unilever, Tech Mahindra, Tata Consultancy Services, Infosys and Asian Paints were among the biggest laggards.