Business | Markets
Bank and financial stocks lift Sensex nearly 2%
Indian shares rose nearly two per cent on Tuesday, led by gains in banking and financial stocks, but Reliance Communications extended losses on worries a family feud could delay a multi-billion dollar deal.
- Reuters
- Published: 23:53 June 17, 2008
Mumbai: Indian shares rose nearly two per cent on Tuesday, led by gains in banking and financial stocks, but Reliance Communications extended losses on worries a family feud could delay a multi-billion dollar deal.
Traders said media reports that banks had paid sharply higher advance taxes, indicating strong earnings, lifted sentiment for financials and propelled the sector index up 4.3 per cent.
Leading lender State Bank of India rose 4.6 per cent to Rs1,387.05, its highest close since early June, while No. 2 lender ICICI Bank firmed 2.7 per cent to Rs820.25, its best close in three weeks.
Advance quarterly taxes paid by State Bank and ICICI were 32 and 38 per cent more respectively from a year earlier, the Economic Times newspaper said, without citing sources.
Top mortgage firm Housing Development Finance Corp rose six per cent to Rs2,298.05.
"Today's rise can be partly attributed to the advance tax numbers being heard in the market, which are quite encouraging, especially for the banking sector," said RK Gupta, managing director at Taurus Asset Management Co. "This eases investor apprehensions regarding the banking sector and their earnings."
India's chief statistician said headline inflation rate was likely to hover at eight to nine per cent for some time and would hit double digits before declining in the last quarter of calendar 2008.
No 2 mobile operator Reliance Communications fell for a second day, losing 0.9 per cent to Rs530.20, on concern a family feud could delay a multi-billion dollar tie-up with South Africa's MTN.
The benchmark 30-share index rose 1.96 per cent or 301.08 points to 15,696.90, to its highest close since June 5, with 25 components rising.
However, the index is nearly 23 per cent down so far in 2008.
In the broader market, 1,801 gainers led 883 losers on volume of nearly 280 million shares.
Biggest listed firm Reliance Industries rose 1.9 per cent to Rs2,329.20.
Jet Airways rose 1.4 per cent to Rs541.50 after the Mint newspaper said Reliance Industries was in talks to buy a six to seven per cent stake in the carrier.
The 50-share NSE index rose per cent to 4,653 points.
Torrent Pharmaceuticals jumped nearly 20 per cent to Rs185 after large block deals were reported by the exchange.
South Indian Bank ended up 3.1 per cent at Rs127.15 after it said it would consider a bonus share issue on June 28.
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