Date:25/07/2006 URL: http://www.thehindubusinessline.com/2006/07/25/stories/2006072504660100.htm

Back Bank stocks lead market recovery

Our Bureau

Credit policy hopes, domestic buying support give a boost

On a positive note
BSE Bankex, the biggest gainer among sectoral indices, ended at 4,388.67 points, up by 4.83 per cent. The market was range-bound and steady, in line with good corporate results.

Mumbai , July 24

Markets took a positive position on Monday on the back of rumours that the Reserve Bank of India may not make any changes in cash reserve ratio in its Credit Policy announcement on Tuesday.

Domestic buying support also helped shares move up. The BSE Sensex opened the week on a positive note to end at 10,215.37 points, up by 129.46 points or 1.28 per cent.

BSE Bankex was the biggest gainer among sectoral indices to end at 4,388.67 points, up by 4.83 per cent. "The Credit Policy may be favourable to banks and help in improving their margins. This expectation led to the Bankex index rising," said Dr K.D. Mehru, VP-Equity Research, Khandwala Securities. He added that the market was range-bound and steady, in line with good corporate results.

"Banking stocks, ICICI Bank (up by 6.22 per cent at Rs 514.90) and Vijaya Bank (up by 16.89 per cent at Rs 39.45) gained significantly on the announcement of good results," said Mr Huzaifa Suratwala, Head- Research Banks, Emkay Share and Stockbrokers Ltd.

The other banking stocks that ended positive included State Bank of India (up by 3.44 per cent at Rs 740.70) and HDFC Bank Ltd (up by 2.81 per cent at Rs 729.20).

NSE S&P CNX Nifty closed at 2,985.85 points, up by 1.39 per cent.

Top gainers in the market were ICICI Bank, followed by Wipro (up by 4.67 per cent at Rs 468.50) and Satyam Computers (up by 3.93 per cent at Rs 713.55).

Top losers were Cipla (down by 1.95 per cent at Rs 215.85), ITC (down by 1.73 per cent at Rs 164.30) and Hindalco (down by 1.37 per cent at Rs 155.30).

"Local firms did a lot of buying and basically there was index trading where people bought in cash and sold in Nifty. The market volatility was, however, high during the day," a dealer said.

However, the overall market breadth was negative with 874 stocks ending in green while 1,477 stocks ended in red. Volumes were marginal with stocks worth Rs 2,514.35 crore being traded on the BSE.