Bank stocks shine bright

STOCK REPORT

Robust growth in industrial production and fall in headline inflation spurred key indices to their highest closing ever.

Benchmark indices rallied driven by a strong 11.4 per cent expansion in India's industrial output in September compared with 9.9 per cent in August and 7.2 per cent a year ago.

The Bombay Stock Exchange's 30-share Sensex ended at 13283.91, up 145.42 points or 1.1 per cent from Thursday. Intraday it touched a record high of 13303.85.

The National Stock Exchange's 50-share Nifty ended at 3834.75, up 38.35 points or 1.0 per cent. Intraday it touched a new lifetime high of 3842.40.

The banking sector was clearly the star of the last three sessions with BSE Bank Index, which rose 2.5 per cent, emerging top gainer among BSE indices.

The bank shares were biggest gainers on Nifty after brokerages upgraded guidance for the sector on better-than-expected earnings for the quarter ended September. A slip in headline inflation also lifted bank shares.

ICICI Bank, up 4 per cent at Rs 831, was the top Nifty gainer.

HDFC Bank, up 3 per cent at Rs 1,045, and Oriental Bank of Commerce up 2 per cent at Rs 242, were other major gainers.

Combined turnover on the exchanges was roughly Rs 12,800 crore, compared with Rs 12,000 crore on Thursday. On BSE, advances evened declines by 1:1.

Pharmaceutical shares were other major gainers on the Nifty hoping that the change in political balance in the US, which saw the Democrats take control of both the Houses after 12 years, would benefit the Indian drug makers.

Sun Pharmaceuticals ended up 3 per cent at Rs 953, and Dr Reddy's Laboratories closed up 2 per cent at Rs 789.

Oil retailers were major laggards on Nifty as crude oil prices touched $61 a barrel on Nymex, the highest level in two weeks, after oil inventories in both the US and Europe fell. Bharat Petroleum and Hindustan Petroleum, down 2 per cent each at Rs 364 and Rs 300, respectively, were the worst hit on Nifty.