Banking shares leading the gains

Srujani Panda / 11 Oct 2011

SBI advances 2% on news that it will raise Rs 5000 cr via rights issue of shares in Dec and govt is likely to subscribe its share fully in cash
As mentioned in our morning update markets opened higher tracking upbeat global cues and buying in banking and metal shares. Telecom stocks rose after the government unveiled the draft New Telecom Policy today wherein users across the country will be able to avail free roaming facilities and keep their phone numbers even if they switch service providers. Bharti Airtel, Reliance Communications and Idea Cellular are each seen 3% up.

Index Rate % Change
Hang Seng 18287.94 3.26
Nikkei 8787.68 2.12
Shanghai 2361.58 0.72
SENSEX 16713.04 0.94
NIFTY 5027.1 0.95

Among individual stocks - ONGC was down over 1% today after the company said net profit will drop by over 47% to be Rs 10,000 crore. Provogue India was up 1% after one of its promoters pledged 24 lakh shares of the company. UB Holdings Ltd (UBHL), which holds the three main group companies - United Breweries, United Spirits and Kingfisher Airlines was up 3% as the company is set to raise its borrowing powers by another Rs 1,000 crore, the stock will also be in the lime light today.

Among the sectoral pack, banking shares were leading the gains, up almost 2%. State Bank of India advanced almost 2% after news that country’s largest bank will raise Rs 5000 crore via rights issue of shares in December and government is likely to subscribe its share fully in cash. Axis Bank and ICICI Bank were also up around 2% each. BSE Realty index was up almost 2%; Sobha Developers was up 4%, Godrej Properties added over 3% and Prestige Estates advanced over 3%.

Prominent gainers on the Sensex were Reliance Industries, up 1%, HDFC added 1.6% and Larsen & Tourbo surged almost 2%. Major losers were Infosys, down almost 2% ahead of first quarter results, ONGC declined 1.7% and Maruti was down 0.8%.
The market breadth, indicating the overall health of the market, is strong. On BSE, 1578 shares rose and 549 shares fell. A total of 93 shares remained unchanged.

In conclusion, we expect the market to remain positive for the remainder of the day and advice reader to wait and watch for the European markets to open as they may provide some vital cues on the desired direction of the market trend. Nevertheless we shall keep updating you regularly through our market commentary.

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