Bankex continues good run

Banking stocks continue to shine this morning with Union Bank leading the rally. The stock has surged over 5% to Rs 374. SBI has jumped 4.2% to Rs 3,110.

The Sensex has continued to hold gains on the back of the upsurge in banking stocks. The index is now up 288 points at 19,088. Nifty is up 85 points at 5,725.

BSE mid and small-cap indices have under-performed the broader index. The mid-cap index has jumped 1% to 8,126 while the small-cap index has advanced 0.7% to 10,319.

The IIP numbers have also chered investors. India's industry began the second quarter on a strong footing, clocking 13.8% growth in July. The growth rate -- the highest in two months -- exceededmarket expectations of moderation to 7.8%. The growth was driven by a strong showing by the manufacturing sector, particularly the capital goods segment.

ICICI Bank has rallied 3.5% to Rs 1,087. HDFC Bank, however, is up just 1% at Rs 2,262. Other banking gainers include Canara Bank, Bank of Baroda, Punjab National Bank and Axis Bank.

Among Sensex stocks, HDFC has added 3% to Rs 649. Reliance Infrastructure and Tata Steel have added 2% each.

SCC, Reliance, Hindalco, ONGC and Larsen & Toubro are the other top gainers.

BSE market breadth is positive. Out of 2,862 stocks traded, 1,837 have advanced while 937 have declined.