Bank stocks shine; drive Sensex higher
Mumbai: Bank stocks were on buyers radar Monday, surging as much as 4.2 percent on hopes that the RBI will hold rates in its upcoming policy review next month.
Shares of ICICI Bank surged 3.71 percent, while HDFC Bank rose by 2.53 percent at the BSE.
The two blue-chip banking stocks together added 99.38 points to the overall market gain where the Sensex surged 300.16 points or 1.38 percent to 22,055.48 -- its record closing.
Among others, IndusInd Bank rallied 4.16 percent, while Kotak Mahindra Bank Ltd soared 3.81 percent, PNB rose by 3.05 percent, Axis Bank by 1.53 percent, Bank of Baroda by 1.40 percent and SBI by 1.35 percent.
Led by the gains in these stock, the BSE banking index rose by 2.73 percent to 14,179.83, becoming the top gainer among the 13 sectoral indices.
Marketmen said that rate-sensitive sectors are attracting buying ahead of RBI monetary policy on April 1.
"The much awaited breakout was triggered mainly by buoyancy in banking counters as investors have started eyeing the RBI policy review scheduled on April 1. Majority expects there would be no change in the key policy rates," said Jayant Manglik, President-retail distribution, Religare Securities Limited.