The apparent political solution to the rift between the UPA and the Left parties over the nuke deal, good second quarter results of the banking sector companies and the subprime mortgage issue taking a back seat has further strengthened the market sentiments to carry forward the bull-run. The four major sectoral indices – BSE Metal, PSU, Oil and Bankex – outperformed the BSE benchmark Sensex on Monday.
The 30-stock Sensex gained 3.47% or 639 points to close at 19,058 points. As against this, Metal index gained the highest. It jumped 9.16% or 1,358 points to end the day at 16,200 points. Similarly, the BSE PSU went up by 5.57% or 483 points to close at 9,156 points, BSE Oil & Gas index gained 4.51% or 476 points at 11,052 points and BSE Bankex gained 4.25% or 396 points at 9,706 points at the end of the market.
Citing the reasons for the rise in the banking stocks, a senior official of the capital market division of the Axis Bank said that the second quarter results of the banks have been impressive. The non-performing assets (NPA) of the banks are also coming down and the capital adequacy ratio (CAR) is going up. And, interestingly the debt market is also doing well. ?All these combined factors had its positive impact on the banking stocks at the bourses,? he said.