Bank stocks shoot up

STOCKS REPORT

The BSE Sensitive Index (Sensex) crossed the psychological 5,400-points level led by last minute gains in private sector banks, pharma and select technology stocks.

The sensex surged 46.17 points (or 0.86 per cent) to close at 5,437.05 yesterday - its highest close since April 11, 2000. On the National Stock Exchange (NSE), the S&P CNX Nifty index also gained 12.30 points to end at 1,736.25. However, market breadth remained negative.

A dealer at a local brokerage house said, "Though the long-term trend is surely positive, there could be some bout of profit taking as we go ahead."

He also added, "As frontline stocks are now showing signs of fatigue, investors are shifting to mid-cap stocks."

Private sector banks stocks surged after Finance Minister Jaswant Singh told the Parliament that the government was working out modalities to allow greater foreign investment in private banks.

IDBI Bank rose 7.04 per cent to Rs 41.80. UTI Bank jumped 5.74 per cent to Rs 121.65. Jammu & Kashmir Bank added 4.72 per cent to Rs 298.30 and Global Trust Bank vaulted 3.51 per cent to Rs 28.

Select index heavyweight stocks traded firm. Cigarette major, ITC bounced back from the intra-day low of Rs 957.30 to a new high of Rs 1,039 before settling at Rs 1,032, up 3.76 per cent over its Monday close.

FMCG major Hindustan Lever too rose from a low of Rs 193 to Rs 200.70 before settling at Rs 199.60, up 3.37 per cent over its Monday close, on institutional buying.

Reliance Industries rose 1.11 per cent to close at Rs 504.65, off from day's low of Rs 493. But ONGC lost 1.55 per cent to Rs 675.35 on falling international crude prices. Tata Steel shed 1.37 per cent to Rs 386.45 on selling pressure after recent gains.

Elsewhere, buying interest continued in pharma stocks. Cipla rose 3.07 per cent to Rs 1,221.45. Ranbaxy Labs vaulted 2.50 per cent to Rs 1,107.90 and Dr Reddy's Labs climbed 0.40 per cent to Rs 1,357.85.