Markets

Sensex regains footing, rallies 411 points as bank stocks spurt

NSE Nifty closed 119.25 points up.

Markets snapped their three-day downward spiral to finish with smart gains on Friday as banking, finance and energy stocks saw robust buying amid supportive global cues.

The 30-share BSE Sensex ended 411.38 points, or 1%, higher at 41,575.14. It hit an intra-day high of 41,611.27.

Similarly, the broader NSE Nifty closed 119.25 points, or 0.98%, up at 12,245.80.

During the holiday-shortened week, Sensex declined 106.4 points or 0.25%, while Nifty slipped 26 points or 0.21%.

According to traders, banking stocks rallied ahead of Finance Minister Nirmala Sitharaman’s meeting with heads of public sector banks on Saturday to review financial performance of the lenders and their business growth.

The meeting is expected to take up issues like non-performing asset recovery through both NCLT and non-NCLT means, take stock of the banking sector and push loan growth, sources said.

Axis Bank was the top gainer in the Sensex pack, climbing 3.33%, followed by PowerGrid, SBI, Bharti Airtel, ICICI Bank, Reliance Industries and Maruti.

On the other hand, Kotak Bank, UltraTech Cement, Titan and TCS fell up to 0.42%.

“State-run banks helped market to trade higher after consecutive days of weakness. Another announcement of bond sale next week from the central bank lifted the financial stocks higher while positive sentiments in global markets on easing trade concerns fuelled a broad-based rally.

“Investors to stay focused on continuity of government policies and given liquidity is solid, momentum is expected to shift from premium stocks to value stocks,” said Vinod Nair, Head of Research at Geojit Financial Services.

BSE energy, realty, oil and gas, bankex, finance, auto and power indices rallied up to 1.74%, while consumer durables ended in the red.

Broader BSE midcap and smallcap indices advanced up to 0.87%.

Global equities soared on expectations that the “phase one” trade deal between the US and China will be finalised next month.

Bourses in Hong Kong and Seoul ended higher, while Shanghai and Tokyo slipped in the red.

Stock exchanges in Europe started on a positive note.

On the currency front, the rupee depreciated 4 paise against the US dollar to 71.36 (intra-day).

Brent futures, the global oil benchmark, advanced 0.29% to USD 68.12 per barrel.

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Printable version | Feb 28, 2020 10:21:31 PM | https://www.thehindu.com/business/markets/sensex-regains-footing-rallies-411-points-as-bank-stocks-spurt/article30412961.ece

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