Date:07/07/2005 URL: http://www.thehindubusinessline.com/2005/07/07/stories/2005070702610100.htm

Back Pvt bank stocks shine; Sensex soars

Our Bureau

Mumbai , July 6

PRIVATE bank stocks had a field day at the bourses on Wednesday with strong speculation that big investors are seeking to invest in them. Share price of Karnataka Bank was locked at the upper circuit on Wednesday, while those of South Indian Bank, IndusInd Bank and Federal Bank saw significant appreciation.

Karnataka Bank touched an intra-day high of Rs 119.70, before closing at Rs 116.90. Overall, the stock gained 20.76 per cent from its previous close of Rs 96.80. According to dealers, there was speculation that a large corporate is eyeing the bank.

Share price of South Indian Bank gained Rs 5.80 and marked a 10.27-per-cent appreciation to end trade at Rs 62.25. IndusInd Bank touched an intra-day high of Rs 77.15, but lost some steam and closed at Rs 76.65, a rise of 8.11 per cent.

Volumes of shares traded in this basket were also high. The BSE reported a total traded quantity of over 63 lakh shares on Wednesday at the Karnataka Bank counter. Over 26.6 lakh shares of IndusInd Bank exchanged hands at BSE today.

Continued buying by foreign institutional investors, largely in the frontline stocks, took the Sensex to a new closing high. The 30-stock benchmark index gained 67.35 points on Wednesday and closed at 7287.60. The Nifty closed with a gain of 17.45 points at 2228.20.

Exchanges also reported several block deals, including in Reliance Capital, Indiabulls and Elder Pharmaceutical.