Bank Stocks take Indian Markets higher - LuvKush Finserve

Indian markets surged and Rupee staged a swift recovery after the new RBI governor Raghuram Rajan's initial announcements sparked hopes of shoring up an ailing economy and currency. Adding to the sentiment, Finance Minister, Chidambaram said that fiscal deficit target of 4.8% of GDP in 2013/14 is a red line which will not be crossed.

The Sensex was up 412 points at 18,980 & the Nifty gained 145 points to close at 5,593. This was the highest closing over the last three weeks. The mid and smallcap indices gained 1.5% each, but underperformed the BSE benchmark index which was shot up 2.2%.

At 1600hrs, the Rupee was quoting at 66.15 against a dollar.

BSE Bankex index zoomed by over 9% followed by counters like Consumer Durables, Realty, PSU, FMCG, Capital Goods, Power and Oil & Gas, all gaining between 2-5%. However, BSE IT and Health Care indices slumped by 2-3%. Banking shares on a roll on the bourses after RBI announced a slew of measures to benefit retail investors and revive the Indian economy.

YES Bank, Axis Bank & Federal Bank gained 12-21% and were the movers in the banking space. Other banks like IndusInd Bank, Kotak Mahindra Bank and ICICI Bank, HDFC Bank, SBI, BoB, BoI, PNB & Union Bank of India rallied 7-10%.

Source : Equity Bulls

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