The stocks ended with gains for the second day as the benchmark Sensex rose over 89 points and the Nifty reclaimed the 9,100-mark on Friday, driven by banking stocks, amid a firming trend overseas. However, both posted their first weekly loss in three, with BSE slumping 227.59 points, or 0.76 per cent, and the Nifty 52.05 points, or 0.56 per cent.
Bank stocks caught the fancy, buoyed by Finance Minister Arun Jaitley’s promise that the Government, along with RBI, will find a solution to the rising NPA problem soon. Bank of India went up 5.02 per cent, Bank of Baroda 4.26 per cent, Union Bank of India 3.29 per cent and PNB 4.05 per cent on the BSE. Shares of SBI rose 2.81 per cent to Rs 276.05. Private lenders too joined the party, with ICICI Bank up 2.90 per cent and Axis Bank 0.23 per cent. The BSE Sensex resumed higher and advanced to 29,539.85 on foreign inflows, but slipped due to profit-booking to close up 89.24 points, or 0.30 per cent, at 29,421.40.
The 50-share Nifty crossed the key 9,100-mark and closed at 9,108, up 21.70 points, or 0.24 per cent. Intra-day, it touched a high of 9,133.55 and a low of 9,089.40. A rising rupee added to the market buoyancy, which closed at 65.41. Vinod Nair, Head of Research, Geojit Financial Services, said, “Banking stocks gained traction today on expectation of announcement of policy for quick settlement of NPAs shortly, which kept positive vibes in the market.”