PSU Bank stocks are in focus after Finance Minister Nirmala Sitharaman spoke about big banks. She said that India needs four or five more banks like SBI, adding, "we need to scale up banking to meet the changing requirements in light of the shifting recent realities of the economy and industry."
At around 09.40 am, Sensex was trading at 60,355.77 higher by 307.3 points or 0.51%. Nifty 50 performed at 17,925.25 up by 72.05 points or 0.4%.
In the early deals, Sensex hit a new lifetime high of 60,412.32. Whereas, the Nifty 50 has hit an intraday high of 17,943.50 that is near the 52-week high of 17,947.65.
In terms of broader markets, the BSE SmallCap outperformed its counterparts by surging more than 110 points. Also, large-cap stocks drove the performance.
In terms of sectoral indices, on BSE, the Bankex index skyrocketed nearly 495 points. The Auto index soared nearly 300 points and the Oil & Gas jumped over 140 points. The BSE Realty surged more than 2%.
The top bulls on Sensex were - Maruti Suzuki soaring 2.4% followed by HDFC Bank climbing 1.9%. Bajaj Auto, SBI and Axis Bank jumped more than 1% each.
Benchmark heavyweight Reliance Industries also surged more than 1% adding further to the upside.
Stocks like M&M, ICICI Bank, IndusInd Bank, Bajaj Finserv, HDFC, Kotak Bank, Asian Paint and Ultratech Cement advanced 0.5-1%.
Top bears on Sensex were - Nestle and Tech Mahindra dived more than 1% each. HCL Tech slipped 0.9%, while Dr Reddy's Lab dipped 0.8%. ITC, Infosys, Titan and Power Grid were marginally down.
Except for Chinese shares, other Asian stocks were trading higher. Hong Kong's Hang Seng zoomed over 100 points, while Australia's S&P/ASX advanced 0.7%. Japan's Nikkei 225 traded flat, while South Korea's KOSPI was marginally up.
The Shanghai Composite index nosedived over 1.3%. Investors are monitoring the development in Evergrande's crises.
On the Hong Kong market, the shares of Evergrande New Energy Vehicle Group shed over 15% after the firm stated that was in a “serious shortage of funds" last week on Friday.
Also, Chinese action on cryptocurrencies will see more speculation even as most fintech players turn to other Asian markets. The Chinese stocks index has corrected over 15% this year as fear of Government impositions sees a huge outflow of foreign investors.
Last week, on Friday, US markets ended flat as markets consolidate after the Federal Reserve outlook on rates and tapering of bond buying. Bond yields closed at almost 3-month highs hitting 1.45% while the US dollar index also gained and closed at 93.24, with oil prices hitting 2-year highs.