Bank stocks sizzle

More than 31.64 lakh SBI shares were traded on the Bombay Stock Exchange (BSE) today, compared with traded volumes of 23.29 lakh shares yesterday.

Bankex, the BSE's index of bank stocks gained more than 2.40 per cent (56 points) to 2371.50. The combined turnover of bank stocks on the BSE and the National Stock Exchange (NSE) jumped almost 49 per cent from Rs 962.40 crore yesterday to Rs 1,431.99 crore today.

"Bank stocks have gained ground on expectations of a good quarterly showing, and a further rate cut by the Central Bank in the forthcoming credit policy, " said an analyst with a local brokerage.

The Canara Bank scrip was up 11.82 per cent to Rs 158.95, Oriental Bank of Commerce gained 10.08 per cent to Rs 267.05, Union Bank of India was up 6.42 per cent to Rs 52.20, UCO Bank was up 5.44 per cent to Rs 18.40, Andhra Bank was up 5.38 per cent to close at Rs 45.05, Corporation Bank was up 5.33 per cent to Rs 237.15, Bank of India was up 4.82 per cent to Rs 59.75 and Punjab National Bank was up 4.22 per cent to Rs 222.10.

Meanwhile, the BSE Sensex which was cruising 66 points higher till early afternoon, closed with a modest 32.06 point gain at 4,887.32.

Market sources said profit taking at higher levels trimmed the big gains earlier in the session.

The Sensex touched a high of 4,921.65 and a low of 4,865.25 in intra-day trades. Meanwhile, the broader S&P CNX Nifty gained 18.70 points to close at 1,555.70, off its day's high of 1,537.30.