Markets cheer bill; Sensex up 111 points to two-week high

Good buying in banking stocks after Parliament passed the Banking Bill and demand for IT and auto shares boosted market sentiment, with BSE benchmark Sensex rising 111 points to close at a nearly two-week high on Wednesday. The 30-share Sensex resumed higher at 19,429.91 and shot up further to day’s high at 19,516.02 before ending at 19,476.00, a gain of 111.25 points (0.57 per cent). This is highest closing since 19,486.80 on December 6. The NSE’s 50-share Nifty also rose by 32.80 points or 0.56 per cent to settle at 5,929.60.  Twenty-three stocks including HDFC Bank, Tata Motors, RIL, ONGC, TCS, Infosys and Sun Pharma ended with gains in Sensex pack. Brokers said that banks hogged the limelight after the banking Bill was passed on Tuesday, paving way for foreign investments in the sector and establishment of new private banks. However, SBI and ICICI Bank shares closed lower after a spate of profit-booking.

‘Auto, Healthcare, Metal, IT and Oil & Gas and Technology indices were all up by more than a per cent,’ said Rakesh Goyal, Senior Vice President, Bonanza Portfolio. IT shares gained on hopes that a solution to the US fiscal cliff issue would improve outlook for the sector’s key export market.

Shares of NBFCs including Edelweiss, Religare Enterprises, M&M Financial, Shriram Transport Finance, IDFC and L&T Finance Holdings gained. Many NBFCs may consider promoting a bank (if allowed) at a holding company level and not convert, BofA Merrill Lynch said. Overall, the market breadth continued to remain positive as 1,651 scrips gained among 3,105 shares, thereby making investors richer by Rs 50,000 crore.