Market cheers decision

Banking stocks bounced back on Monday, with three of the four public sector banks whose boards met yesterday sticking to their decision on rate hikes.

The Bombay Stock Exchange (BSE) banking index, Bankex, was up by 84.65 points, despite a 53.87-point fall in the Sensex.

The Bankex closed at 4,857.59, 1.77 per cent higher than Friday's close of 4,773.04. On the other hand, the Sensex closed 0.50 per cent lower at 10,812.64, against the previous day's close of 10,866.51.

On Friday, the Bankex had reported the sharpest fall of 72.47 points (1.50 per cent) in recent times.

Union Bank of India, Corporation Bank, and State Bank of Mysore gained more than 3 per cent each, while Canara Bank, Vijaya Bank, Andhra Bank, State Bank of Travancore, and Oriental Bank of Commerce appreciated in the range of 2-3 per cent.

State Bank of Mysore was the largest gainer on Monday, up 7.6 per cent to Rs 4,374.75, against the previous day's close of Rs 4,065, and Union Bank of India was up 3.9 per cent to Rs 105.50 (Rs 101.50). The State Bank of India rose by Rs 3.10 to Rs 811, and Bank of Baroda rose by Rs 3.65 to Rs 231.15.

The aggregate turnover of banking stocks increased by 21 per cent to Rs 728 crore, against the Rs 600 crore turnover reported on Friday. A total of 2.76 crore shares changed hands, compared to 2.80 crore shares on Friday.

Some private banks, too, were gainers. ICICI Bank rose 3.8 per cent to Rs 568.10 (Rs 547.29). HDFC Bank was up by Rs 6.30 to Rs 803.30, and UTI Bank was up by Rs 4.30 to Rs 321.55.

The combined turnover of ICICI Bank, HDFC Bank, UTI Bank, Corporation Bank, Canara Bank, and Union Bank of India more than doubled from their previous day's level.