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BSE Sensex rises 72 points ahead of RBI review

Healthy buying apart from banking was also observed in consumer durables and automobile stocks. However, metal and oil and gas scrips came under selling pressure.

Photo: Reuters Photo: Reuters

The Sensex ended up 72.50 points at 28187.06 and the Nifty was up 10.20 points at 8543.05 on Monday.

The prime highlight of Monday's session was the PSU bank rally led by State Bank of India which jumped over 4 per cent followed by Punjab National Bank (up 2.5 percent) and Bank of Baroda (up 4.5 percent).

The government on Friday had unveiled a Rs 70,000-crore recapitalisation plan for state-run banks over four years. The fund-infusion plan will begin with a Rs 25,000-crore injection in the current fiscal year, followed by another Rs 25,000 crore in FY17 and Rs 10,000 crore each over the subsequent two years,

India Inc is also expecting  a rate cut by the Reserve Bank of India during on Tuesday's monetary policy review. A rate cut however seems dicey given some major concerns that may restrict the RBI from cutting rates some of which could be monsoon, strengthening of the US dollar on expectations of US Fed increasing rates and rise in spending and expenses of the central government.

The Sensex touched a high of 28,263.35 points and a low of 28,071.37 points in the intra-day trade.

The top losers on Sensex were Lupin (1.9 per cent), Coal India (1.8  per cent), M&M  (1.7  per cent), HDFC  (1.5  per cent).

Healthy buying apart from banking was also observed in consumer durables and automobile stocks. However, metal and oil and gas scrips came under selling pressure.

Shares of Suzlon Energy jumped over 15 per cent in the afternoon trade on the company's robust Q1 earnings.

HCL Technologies provisionally closes 5.6 per cent lower as the top Nifty loser as the IT firm reported a fall in its net profit.

Bharat Forge shares were up 2.7 per cent as the company reported a 34.8 per cent increase in net profit to Rs 195.4 crore for the April-June period compared to Rs 145 crore during the same period last year.

The BSE MidCap index hit a record high of 11,392.69 in the first half.  Among midcap stocks,  Sun TV Network was up 11.47 per cent, Jaiprakash Power Venutures 8.13 per cent higher, Indian Bank was up 7.94 per cent and Canara Bank up 5.34 per cent.

In global cues Greece was the biggest development to watchout for as the Athex Composite reopened with a 23 per cent loss at 615.12 after a five-week shutdown. Trading on the Greece stock market was suspended on 29 June 2015 after Greek Prime Minister Alexis Tsipras called a referendum on the country's bailout terms.

Asian stocks had a weak session across the board amid signs of a deepening slowdown in China's economy as oil prices fell in Asia on persistent concerns about the global supply glut after the OPEC cartel's indication that it will not budge from its current lofty output levels.