ICICI Bank, the largest lender in the private sector, led rally in banking sector stocks, lifting the sectoral index by 3.19 per cent in early trade on the Bombay Stock Exchange today on hectic buying by funds driven by positive cues from global markets.
The BSE Bankex surged 131.22 points, or 3.19 per cent, to 4,136.98 points, providing a major support to the benchmark BSE Sensex, which gained nearly 200 points at 9,063.61 in early trade.
All the 18 constituents of the sectoral index were trading in positive zone with gains up to 5.06 per cent.
Shares of ICICI Bank traded heavily and shot up by nearly five per cent to Rs 340.50 with nearly 12.63 lakh shares changing hands on the BSE.
State-run State Bank of India gained 2.4 per cent to Rs 973.40 and over 1.43 lakh shares got transacted on the bourse.
Buying in bank stocks gained momentum on the domestic bourses mostly due to worldwide rally in stocks on reports that Citigroup, JPMorgan Chase and Bank of America returned to profitability in January and February, traders said.
Improved liquidity in the financial system and expectations of more rate cuts by the Reserve Bank of India in view of falling inflation also accelerated buying activity, they added.