Banking stocks in demand; Bank Nifty up over 500 points; Bajaj twins, ICICI Bank, AU Bank outperform

The Bank Nifty is currently trading higher by 544 points or 1.58% at 34,960 levels.

Jul 22, 2021 11:07 IST India Infoline News Service

Stock Market Up
The Indian stock market made a strong start after snapping a two-day decline on the back of positive global cues. Today, the banking and financial stocks lift the stock market, with Nifty Bank rising over 1.5% on Thursday’s trade.

The Bank Nifty index gained after a freefall on Tuesday’s trade, with the index scrapped over 35,000-level and has nosedived by nearly 722 points so far today. All stocks listed on the index were in the red.

The Bank Nifty is currently trading higher by 544 points or 1.58% at 34,960 levels. IDFC First Bank was among top gainer in the index, up by 2.83%, ICICI Bank, and AU Bank was up over 2.63% & 2.17%, respectively. IndusInd Bank, Federal, Axis Bank, PNB, SBI, Bandhan Bank, SBI, Kotak Bank and RBL Bank were up in the range of 2-1%, respectively.

Shares of IDFC soared 12% after the company said the Reserve Bank of India (RBI) has allowed it to exit as the promoter of IDFC First Bank as the five-year lock-in period expires.

Bank of Maharashtra announced that 17,03,37,546 equity shares of Rs10 each allotted pursuant to the QIP issue are listed and admitted for trading with effect from 22 July 2021 on NSE and BSE. The bank will announce its quarterly earnings today.

IndusInd Bank will announce Quarterly Result on 27 July 2021.

IDBI Bank will hold a meeting of the Board of Directors of the Company on 28 July 2021.

As we know India’s 'Big Bull' or 'Warren Buffett' Rakesh Jhunjhunwala has increased his stake in Federal Bank as the shareholding pattern of the company shows his name appear in the June 2021 quarter. Also, Jhunjhunwala made a fresh buying in two stocks - PSU metal company SAIL and Indiabulls Housing Finance as he purchased a 1.39% stake and 2.17% stake respectively during the said period.

Nifty Financial has also joined the rally, with the index up over 1.50% at 16,537.20. Bajaj Twins spiked by 4-2%, Muthoot Finance, SBI Life, ICICI General, Chola Fin and M&M Finance were up over 1-2% respectively.

The PSU Bank also climbed by 1.62% at 2,426.80. Central Bank, IOB, Bank of Baroda, J&K Bank up in the range of 5-2%.

Further, many reports have stated that the privatisation plan of two state-owned banks and one general insurer is unlikely to take place this fiscal year FY22. The two PSBs that are shortlisted for privatisation are namely Central Bank of India and the Indian Overseas Bank. While, the speculations are that among National Insurance, United India Insurance and Oriental Insurance - could be up for privatisations.

Meanwhile, the Sensex was trading at 52,619.70, higher by 615 points or 1.18% and the NSE Nifty was at 15,813.60, up 181 points or 1.16%.

Bajaj Finance was the biggest gainer, up 4.95%. JSW Steel, Tata Steel, Hindalco and Tech Mahindra were among other gainers on the Nifty 50 index.

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