Equity indices close 2 pc higher, banking stocks lead rally


Mumbai: Equity benchmark indices shrugged off border tensions between India and China and closed 2 per cent higher on Thursday with banking and financial stocks leading the rally.

The BSE S&P Sensex closed 700 points or 2.09 per cent higher at 34,208 while the Nifty 50 edged higher by 211 points or 2.13 per cent at 10,092.

All sectoral indices at the National Stock Exchange were in the positive terrain with Nifty financial service up by 3.5 per cent, private bank up by 3.4 per cent, PSU bank by 2.7 per cent and metal by 2.9 per cent.

Among stocks, Bajaj Finserv was the top gainer after moving up by 8.2 per cent to Rs 5,451 per share. Bajaj Finance too surged by 5.5 per cent while State Bank of India ticked up by 4 per cent.

Private lenders Kotak Mahindra Bank, HDFC Bank and Axis Bank edged higher by 4.5 per cent, 3.9 per cent and 3.8 per cent respectively.

Shares of Coal India jumped by 6.3 per cent after Prime Minister Narendra Modi launched the auction process of 41 coal blocks for commercial mining. The government’s move will open the coal sector for private players and a major step in the direction of India achieving self-reliance.

Index heavyweight Reliance Industries added gains of nearly 3 per cent and closed at a high of Rs 1,663.70 per share. The other prominent winners were Vedanta which gained by 4.7 per cent and Power Grid Corporation by 3.8 per cent.

Meanwhile, Asian stocks fell as spiking coronavirus cases in several US states and China pushed back hopes of a quick global economic recovery from the Covid-19 pandemic.

Japan’s Nikkei was down by 0.45 per cent while Hong Kong’s Hang Seng shed 0.07 per cent and South Korea’s Kospi lost by 0.35 per cent.