Markets tick higher as bank stocks spurt; Fed policy eyed

Markets tick higher as bank stocks spurt; Fed policy eyed
Mumbai, Jun 10 () Benchmark indices resumed their upward trend on Wednesday after a one-day pause as Reliance Industries and bank stocks saw robust demand amid mixed global cues.

Overcoming a choppy start, the 30-share BSE Sensex settled 290.36 points, or 0.86 per cent, higher at 34,247.05.


Similarly, the NSE Nifty climbed 69.50 points, or 0.69 per cent, to 10,116.15.

IndusInd Bank was the top gainer in the Sensex pack, rallying 7.93 per cent, followed by Kotak Bank, Reliance Industries, HDFC, Axis Bank and SBI.

On the other hand, Hero MotoCorp, Bajaj Auto, Tata Steel and ONGC were among the laggards, skidding up to 3.92 per cent.

Global markets were mixed ahead of the US Federal Reserve's latest policy outcome, which will be the first since the US began to reopen and the first since Friday's blockbuster jobs report.


Buying in bank stocks led benchmarks higher during the day, traders said.

Persistent foreign fund inflows too buoyed the sentiment, they added.

On a net basis, foreign institutional investors bought equities worth Rs 490.81 crore on Tuesday, provisional exchange data showed.

"Bulls firmly in control today and heartening to see some of the stressed private sector banks as well as public sector banks rally ferociously which apparently means things are in fact not as bad as it is made out to be.

"Improved market breadth in itself presents several opportunities for savvy investors," said S Ranganathan, Head of Research at LKP Securities.


BSE bankex, realty, finance, energy and healthcare indices rose up to 1.79 per cent, while auto, metal, oil and gas, capital goods and consumer durables settled up to 1 per cent lower.

Broader BSE mid-cap and small-cap indices rose up to 0.92 per cent.

In rest of Asia, bourses in Shanghai and Hong Kong ended in the red, while Seoul and Tokyo settled with gains.

Stock exchanges in Europe were trading on a negative note in early deals.

International oil benchmark Brent crude futures tumbled 2.26 per cent to USD 40.25 per barrel.


On the currency front, the rupee settled on a flat note at 75.59 against the US dollar.

The COVID-19 death toll rose to 7,745 and the number of cases climbed to 2,76,583 in the country on Wednesday, according to the Union Health Ministry. ANS ABM ABM

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