Strong market breadth; banks stocks rally

Strong market breadth; banks stocks rally

Jan 09, 2020 06:01 IST capital market

The Sensex and the Nifty held near the days high in mid-morning trade. The trend was supported by easing tensions in the Middle East, reversal in crude oil prices and a sharp rebound in rupee. The Nifty marched towards 12,200 mark.

At 11:29 IST, the S&P BSE Sensex, surged 501.47 points or 1.23% higher at 41,319.21. The Nifty 50 index advanced 147.8 points or 1.23% at 12,173.15.

In the broader market, the S&P BSE Mid-Cap index was up 1.25% while the S&P BSE Small-Cap index was up 1.47%.

The market breadth favored the buyers. On the BSE, 1637 shares rose and 501 shares fell. A total of 163 shares were unchanged. In Nifty 50 index, 44 stocks advanced while 6 stocks declined.

Buzzing Index:

The Nifty Bank index surged 1.86% to 31,958.45.

Among private sector banks, RBL Bank (up 3.34%), Federal Bank (up 2.99%), IndusInd Bank (up 2.97%), ICICI Bank (up 2.67%), Axis Bank (up 2.01%), HDFC Bank (up 1.07%), Yes Bank (up 0.87%), Kotak Mahindra Bank (up 0.79%) and AU Small Finance Bank (up 0.41%) surged.

Among PSU banks, Syndicate Bank (up 3.03%), SBI (up 2.66%), Canara Bank (up 2.29%) Punjab National Bank (up 2.22%), Bank of Baroda (up 2.15%), Oriental Bank of Commerce (up 1.98%), Union Bank of India (up 1.92%) and Bank of India (up 1.47%) advanced.

Stocks in Spotlight:

Sunteck Realty jumped 4.31% after the company said it tied up with State Bank of India (SBI) for a finance scheme. Sunteck Realty announced after trading hours on Wednesday that it entered into a memorandum of understanding with SBI, which is the first step towards boosting the residential housing sector under SBIs Sapna Aapka - Bharosa SBI Ka scheme with bank guarantee to home buyers under the builder finance scheme.

JSW Energy fell 1.47%. JSW Energy said CARE Ratings has assigned the rating of CARE AA-/Credit Watch with Negative implications for the companys Rs 300 crore non-convertible debenture (NCD) issue. Further, the ratings on the outstanding NCDs are re-affirmed at CARE AA-/Credit Watch with Negative implications.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 6.523% at 11:25 IST compared with 6.557% in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was trading at 71.40, compared with its previous closing low of 71.70.

In the commodities market, Brent crude for March 2020 settlement was up 39 cents a barrel at $65.83 per barrel. The contract slumped 4.15% to settle at $65.44 a barrel in previous session as geo political tensions in Middle East eased.

MCX Gold futures for 5 February 2019 settlement declined 0.38% to Rs 39,959.

Foreign Markets:

Asian markets were trading higher on Thursday as the United States and Iran backed away from the brink of conflict in the Middle East while investors reversed their safety plays.

US stocks posted gains, with the Nasdaq notching a new record close, after remarks by President Trump suggested the US and Iran were refraining from further military action following attacks on US bases overnight, in retaliation for last weeks killing of Maj. Gen. Qassem Soleimani by American forces.

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