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Home > Autos News > Sep > Banks, autos fuel 100 pt rally in Sensex
Banks, autos fuel 100 pt rally in Sensex
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MUMBAI: After a couple of failed attempts in the past week, the Nifty managed to close above the psychological 4500 mark Thursday backed by strong gains in banking and automobile stocks.

Despite a sceptical undertone, on account of the US Federal Reserve meet on Sep 18, the market saw a smart rally with good participation from index heavyweights State Bank of India, HDFC, Tata Motors, Maruti Udyog, Reliance Industries and Reliance Communications.

Bombay Stock Exchange's Sensex closed up 109 points or 0.7 per cent at 15,614.44, making a high of 15,650.14 and low of 15,547.66.

“There was strong pattern formed today, but one cannot confirm a break out until 4547 and 4630 in Nifty is reached. I am bullish on the market, so I think we will see these levels in the next 2-3 trading sessions,” said Manas Jaiswal, senior technical analyst at Emkay Share and Stock Broking.

National Stock Exchange's Nifty ended at 4528.95, higher by 32 points or 0.71 per cent. The index touched a high of 4540.6 and low of 4498.05 during the session.

But the real action was in the mid-cap space with leadership from real estate which cheered industry leader Unitech's inclusion in National Stock Exchange's Nifty 50.

“We are positive on the realty space and are looking at 10-15 per cent appreciation in stocks like Unitech, DLF and HDIL in the next two weeks,” Jaiswal said.

Unitech ended over 7 per cent higher while DLF and HDIL were up 1.54 per cent and 1.32 per cent respectively.

Banking stocks also had a field day. Reports that State Bank of India plans to raise at least Rs 1,000 crore through equity and debt before the end of the year lifted the stock 3.28 per cent to Rs 1,676.

Union Bank of India shot up 2.08 per cent on news the bank plans to open a new branch in Hong Kong and two more representative offices in mainland China.

Canara Bank also witnessed an upside on the bank's confirmation to buy Oriental Bank. The deal is expected to be wrapped up this fiscal. Canara Bank shares closed nearly one per cent higher at Rs 260 while Oriental Bank rose 1.20 per cent to Rs 232.

Other banking stocks also posted gains. HDFC Bank added 2.42 per cent to Rs 1,210, Axis Bank climbed 1.96 per cent to Rs 659 and Bank of Baroda was up 1.87 per cent to Rs 283.

“Several scrips in the banking sector like Andhra Bank, Indian Overseas Bank, SBI and IndusInd Bank have potential returns of 15-20 per cent in the next two months,” Jaiswal said.

Andhra Bank ended 0.7 per cent higher at Rs 93, IndusInd Bank gained 1.26 per cent to Rs 64.50 but Indian Overseas Bank was down 0.67 per cent at Rs 141.55.

Ipca Laboratories ended with a marginal 1.12 per cent gain, even as it announced the acquisition of a small registration-cum-distribution company in Australia.

Short covering in Nifty September futures saw it close at 2-point discount to the spot. Open interest in the contract stood at 3.99 crore.

“The narrowing of discount is a very positive signal for the market,” Jaiswal said.

“Friday, the Nifty will face resistance at 4590 while support comes at 4513,” he added.


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