Friday February 22, 03:30 PM
Markets close above 3,600... |
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By Equitymaster.com
Old economy stocks continue to remain the favoured block on the bourses. While software stocks closed on a weaker note, select PSUs and auto stocks witnessed buying interest. There was mixed activity in FMCG stocks. Banking stocks were the stars of this week.
The BSE Sensex closed at 3,605 (up 35 points) and the NSE Nifty closed at 1,165(up 15 points). The rupee was trading at Rs 48.71 per US dollar.
ICICI (ICIC.BO, news) and ICICI Bank (ICBK.BO, news) were up sharply today. The reasons could be multifold. One is that RBI's decision to hike FDI limit in the banking sector. Secondly, ICICI is planning to sell its 16% stake in ICICI Bank through a special purpose vehicle. If that materializes, ICICI would garner around Rs 10 bn and this could enable it to bring down NPAs significantly.
Corporation Bank has signed an agreement with Delhi Metro Rail Corporation, DMRC, for the installation of ATMs at its stations. The bank will install ATMS at 11 sites. The stock was up 2%. Besides hopes of consolidation is fueling buying interest in smaller banks. Federal bank (FED.BO, news) , IndusInd (INBK.BO, news) bank and Vyasa bank were the key movers amongst banking stocks. But SBI was down marginally.
ABB was up 3% after the company declared encouraging results. The Nashik and Baroda plants have been identified as sourcing bases for ABB group companies. Further, the markets are also strongly expecting power sector reforms in the forthcoming budget. Amongst engineering majors, Crompton Greaves was up 20%.
Software continued to wilt under the NASDAQ shadow and cement was lacklustre. Media stocks were strong and auto is witnessing profit taking.
Indian Hotels, SAIL, Tata Steel (TISC.BO, news) , LIC Housing Finance, Shree Rama Multitech, TV 18, Bharat Electronics, TVS Motors, Siemens (SIEM.BO, news) , Ranbaxy, HDFC Bank (HDBK.BO, news) , Hero Honda (HROH.BO, news) , Hindalco (HALC.BO, news) and Tata Tea (TTTE.BO, news) were the other key gainers.
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