Sensex edges up as govt infuses capital into PSU banks

Shrugging off weak global cues, the BSE Sensex in a choppy trade on Tuesday inched up after two days, led by gains in banking stocks following government's decision to pump Rs 22,915 crore into 13 PSU banks.

PTI| Last Updated: Jul 19, 2016, 17:15 PM IST

Mumbai: Shrugging off weak global cues, the BSE Sensex in a choppy trade on Tuesday inched up after two days, led by gains in banking stocks following government's decision to pump Rs 22,915 crore into 13 PSU banks.

Hopes over passage of the GST bill in the ongoing session of Parliament and good progress in monsoon rains across the country also buoyed trading sentiment.

Shares of state-run banks such as Canara Bank, State Bank of India and Indian Overseas Bank turned buyers' fancy and recorded gains of up to 4.71 percent.

The Centre has provided Rs 22,915 crore capital to 13 PSU banks including SBI, PNB and IOB to enhance lending operations and enable them to raise more money from the market.

Meanwhile, global oil prices eased on concerns over a glut in the industry, pulling down Brent by 0.30 percent to USD 46.82 per barrel.

Consequently, shares of state-run oil marketing companies such as HPCL, IOC and BPCL were in limelight, surging by up to 5.09 percent.

"Earnings released so far have failed to add more legs to the previous weeks' rallies, but with potential for GST clearance, optimism remained, and value buying was noticed at lower levels," said Anand James Chief Market Strategist Geojit BNP Paribas Financial Services.

The 30-share Sensex resumed higher at 27,790.05 and firmed up to 27,826.69 on emergence of buying in bluechips.

However, it fell afterwards to 27,637.98 before ending at 27,787.62, showing a rise of 40.96 points or 0.15 percent.

The NSE Nifty closed 19.85 points or 0.23 percent higher at 8,528.55 after shuttling between 8,540.05 and 8,476.70.

Broader markets displayed a mixed trend with BSE mid-cap rising 0.18 percent, while the small-cap shed 0.11 percent.

Overseas, Europe was lower amid a drop in oil prices and ongoing geopolitical tensions, despite US markets closing at all-time highs in yesterday's trade.

Asian indices ended mixed, Hong Kong, Japan, South Korea and Singapore were down 0.21 percent to 0.60 percent while China and Taiwan rose 1.37 percent to 0.30 percent.

European stocks fell as disappointing corporate earnings soured investors' sentiment with France, Germany and the UK indices down up to 1.13 percent.