Post-Market: Sensex climbs 319 points; SBI jumps 10% Analysis for May 23, 2014

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The domestic bourses wrapped the session with hefty gains on account of huge funds inflow due to strength in banking and oil stocks. Buying interest in banking, power and oil & gas stocks was propelled by bargain hunting as investor sentiments about these sectors improve with the new government at the helm. The Finance, Petroleum and Fertilizer ministries are advocating subsidy cuts in order to cut the level of market borrowings by the government, freeing resources for the private sector to revive investment. Lower government borrowing is also expected to pave the way for Reserve Bank of India to cut interest rates, which will again help investment by the private sector. The positive data out of China and the United States spurring optimism about the global economic recovery also contributed to the positive mood on Dalal Street. Banking index bellwether SBI was on fire as it climbed 10% post reporting a profit of 3041 crore in Q4FY14. On the currency front, rupee touched an 11 month high appreciating by 26 paise and is currently trading at 58.47 per US dollar. At the closing 21 Sensex components registered gains; the broader markets continued their outperformance for the fifth consecutive session. At 4:00PM BSE SENSEX was at 24693.35 up by 318.95 points or by 1.31 percent and then NSE Nifty was at 7367.1 up by 90.7 points or by 1.25 percent. The top gainers of the BSE Sensex pack were State Bank of India (Rs. 2755.25,+9.69%), Tata Power Company Ltd. (Rs. 105.75,+6.33%), Maruti Suzuki India Ltd. (Rs. 2384.85,+5.32%), NTPC Ltd. (Rs. 160.35,+4.39%), Oil And Natural Gas Corporation Ltd. (Rs. 407.50,+3.68%), among others.The top gainers of the NSE Nifty pack were State Bank of India (Rs. 2753.50,+9.63%), Tata Power Company Ltd. (Rs. 105.80,+6.39%), Jindal Steel & Power Ltd. (Rs. 300.75,+5.95%), Punjab National Bank (Rs. 1037.85,+5.35%), Maruti Suzuki India Ltd. (Rs. 2385.85,+5.34%), among others.In BSE, BSE_PSU index was at 8614.28 up by 321.09 points and BSE Power index was at 2287.46 up by 80.78 points.

The Market breadth, indicating the overall strength of the market, was positive. On BSE out of total shares traded 3282, shares advanced were 2271 while 902 shares declined and 109 were unchanged.

Asian stocks followed suit with Wall Street on Friday after improving factory activity data in both China and the United States suggested the global economy is recovering. However, lingering concerns over the political crisis in Ukraine and a military coup in Thailand kept overall gains in check. Japanese shares surged to a three-week high on the back of a weaker yen following positive economic data from the world's biggest economies. China's Shanghai Composite Index rose 0.7 percent to 2,035, led by property developers amid reports the government will ease curbs on home purchases to support growth. Hong Kong's Hang Seng Index ended little changed with a positive bias. On the economic front, China's leading economic index, a measure of future economic conditions, continued to rise in April though at a slower rate, a report from the Conference Board showed.

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Story first published: Friday, May 23, 2014, 17:12 [IST]
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