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Banking stocks lead intraday rebound for key indices

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Capital Market
Last Updated : Apr 11 2016 | 3:13 PM IST

After seeing a strong intraday rebound in afternoon trade, key benchmark indices hovered in green in mid-afternoon trade. At 14:19 IST, the barometer index, the S&P BSE Sensex, was up 145.56 points or 0.59% at 24,819.40. The gains for the Nifty 50 index were higher than the Sensex's gains in percentage terms. The Nifty was currently up 50.75 points or 0.67% at 7,605.95. Gains in banking stocks and a rebound in index heavyweight Infosys aided intraday rebound for the two key benchmark indices triggered by a recovery in European stocks.

The Sensex rose 179.75 points or 0.72% at the day's high of 24,853.59 in mid-afternoon trade, its highest level since 7 April 2016. The barometer index lost 150.64 points or 0.61% at the day's low of 24,523.20 in afternoon trade, its lowest level since 16 March 2016. The Nifty rose 61.55 points or 0.81% at the day's high of 7,616.75 in mid-afternoon trade, its highest level since 7 April 2016. The index lost 38.35 points or 0.5% at the day's low of 7,516.85 in afternoon trade, its lowest level since 17 March 2016.

In overseas stock markets, European stocks reversed initial losses. Asian stocks witnessed a mixed trend. Chinese stocks edged higher after bullish remarks from a Chinese investment analyst on China A-shares or yuan-denominated stocks trading on the mainland. In mainland China, the Shanghai Composite closed 1.64% higher. In Hong Kong, the Hang Seng index settled 0.35% higher.

US stocks registered small gains during the previous trading session on Friday, 8 April 2016, as yen eased from its highest level against the dollar in almost 18-months after Japan's finance minister Taro Aso said he may act against what he termed one-sided yen rise. The yen, typically viewed as a safe-harbor asset, edged higher in recent trading sessions as fears that global central banks won't be able to fix the sluggish global economy sapped investor sentiment and spurred a flight to perceived safety. Meanwhile, New York Fed President William Dudley on Friday, 8 April 2016, said that the US central bank must maintain a cautious and gradual approach to raising interest rates.

Closer home, the market breadth indicating the overall health of the market once again turned positive from negative in mid-afternoon trade. On BSE, 1,328 shares rose and 1,090 shares fell. A total of 121 shares were unchanged. The breadth had turned negative from positive in afternoon trade. The BSE Mid-Cap index was currently up 0.74%, outperfroming the Sensex. The BSE Small-Cap index was currently up 0.43%, underperforming the Sensex.

IT stocks gained. HCL Technologies (up 0.4%), TCS (up 1.51%), Tech Mahindra (up 0.99%) and Wipro (up 1.71%) edged higher.

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IT major and index heavyweight Infosys edged higher in volatile trade. The stock gained 0.5% to Rs 1,173.20. The stock hit high of Rs 1,175.80 and low of Rs 1,151.40 so far during the day. Aberdeen Asset Management Asia sold 56.26 lakh shares or 0.24% equity in the IT major in open market transaction on 7 April 2016. Aberdeen Asset Management Asia now holds 7.01 crore shares or 3.04% stake in Infosys. The disclosure was made after market hours on Friday, 8 April 2016.

Infosys will announce its Q4 March 2016 result on Friday, 15 April 2016, when the stock market is closed for a holiday.

Bank stocks edged higher. Among public sector banks, Punjab National Bank (up 0.06%), Bank of Baroda (up 2.17%), State Bank of India (SBI) (up 1.45%), Union Bank of India (up 0.4%), Canara Bank (up 1.29%), and Bank of India (up 0.49%) edged higher.

Among private sector banks, Axis Bank (up 0.77%), ICICI Bank (up 0.36%), Yes Bank (up 1.17%), HDFC Bank (up 0.38%), and IndusInd Bank (up 1.22%) edged higher.

Kotak Mahindra Bank rose 0.4%. The bank announced after market hours on Friday, 8 April 2016, that its subsidiary, Kotak Mahindra (International) (KMIL) a foreign portfolio investor (FPI) on its client account has acquired 12.89 lakh shares at Rs 92.69 each, aggregating to Rs 11.90 crore being 7.61% of the paid-up capital of Banswara Syntex. Banswara Syntex was incorporated on 5 May 1976 and registered total income of Rs 1243.05 crore in FY 2015. It has operations in textiles industry. Shares of Banswara Syntex were up 0.47% at Rs 107.30.

Suzlon Energy rose 0.85% after the company announced its maiden order win of 105 megawatts from the Greenko Group, the largest renewable Independent Power Producer (IPP) with over 1 gigawatt (GW) of operating assets. The project will be located in Andhra Pradesh, India and will be progressively commissioned by January 2017. The announcement was made during trading hours today, 11 April 2016.

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First Published: Apr 11 2016 | 2:20 PM IST

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