Mkts recovery led by bank shares
After a weak opening, the benchmarking indices managed to rebound by afternoon and closed positive following relief rally from counters such as banks, metals, oil, infrastructure and select FMCG.
Mumbai: After a weak opening, the benchmarking indices managed to rebound by afternoon and closed positive following relief rally from counters such as banks, metals, oil, infrastructure and select FMCG.
Investors are seen resorting to value buying at lower levels. Analysts say that the recent correction is an opportunity for investors to buy the good stocks at low prices.
Sensex closed gaining 150 points at 25,760 and Nifty ended 44 points higher at 7,807. The broader markets also gained with midcap and smallcap indices closed up 0.2 per cent and 0.5 per cent each.
On the sectoral front, the bankex index gained higher with 1.5 per cent followed by capital goods and other, while IT index closed down 1 per cent.
From banking pack, ICICI Bank, SBI, Kotax Bank, and HDFC Bank shares reported gains up to 3 per cent each, as the Finance Minister to meet PSU banks next week to discuss about the bad loans and credit flow.
In the oil and gas sector, RIL closed up 0.3 per cent and ONGC up 0.6 per cent owing to the gains in global crude oil prices.
On the other hand, the IT exporters TCS and Infosys closed down 0.9 and 1.5 per cent, each, as the US plans reforms in H-1B visa programme in order to check abuse of the system.
The gainers: Gail, up 4.62 per cent at Rs 294.65; Tata Steel, up 3.44 per cent at Rs 229.80; Dr Reddy's Lab, up 3.43 per cent at Rs 3,500.50; State Bank of India (SBI), up 3.23 per cent at Rs 247.95; and Vedanta, up 2.75 per cent at Rs 89.65.
The losers: Coal India, down 1.94 per cent at Rs 331.10; Infosys, down 1.86 per cent at Rs 1,080.20; Hindustan Unilever, down 1.54 per cent at Rs 784.75; Tata Consultancy Services (TCS), down 0.93 per cent at Rs 2,374.90; and Tata Motors, down 0.66 per cent at Rs 400.20.