Sensex Trades Higher, Banking Stocks Rally

Benchmark indices staged a solid rally in trade led by gains in banking stocks. The Sensex was last seen trading higher by 596 points, while the Nifty gained 170 points in trade.

Banking stocks that gained included the heavyweights like ICICI Bank and HDFC Bank. A fall in retail inflation also helped improve sentiments for banking stocks.

Reports that the government was finalizing a second stimulus package also led to some buying support. Shares in Wipro were trading marginally higher, ahead of the company's results to be declared later today.

Shares in Welspun Corporation jumped 4 per cent after the company partially resumed operations at its plant in Anjar, Gujarat.

Pharma stocks were once again leading the set of gainers with Aurobindo Pharma, Sun Pharma and Cipla all trading higher.

Among the top Nifty gainers were UPL, Hindalco and Shree Cements. The few stocks that lost ground from the Nifty were Zee Entertainment, Maruti and ONGC.