Sensex jumps 976 points, banks lead broad-based rally

Equity benchmark indices traded firm on Friday and closed 2 per cent higher due to broad-based purchasing across key sectors.

At the closing hour, the BSE S&P Sensex was up by 976 points or 1.97 per cent at 50,540 while the Nifty 50 advanced by 269 points or 1.81 per cent to 15,175.

All sectoral indices at the National Stock Exchange were in the green with Nifty PSU bank rallying by 3.8 per cent, private bank by 3.6 per cent, financial service by 3.2 per cent and realty by 1.1 per cent.

Among stocks, State Bank of India closed 5 per cent higher at Rs 404 per share after reporting a net profit of Rs 6,451 crore during the quarter ended March.

Private sector lenders made smart gains with HDFC Bank up by 4.7 per cent, IndusInd Bank by 4 per cent, ICICI Bank advanced by 3.9 per cent, Axis Bank by 3.7 per cent and Kotak Mahindra Bank by 3 per cent.

Analysts said the gains rode on expectations that when the economic cycle turns decisively, credit growth will pick up smartly for well-capitalised private banks.

However, Power Grid Corporation, Dr Reddy's, IndianOil Corporation and Eicher Motors traded with a negative bias.

Meanwhile, Asia shares were mixed even as receding inflation fears lifted Wall Street overnight.

Japan's Nikkei index was up 0.78 per cent and Hong Kong's Hang Seng index crawled up 0.03 per cent. South Korea's Kospi fell 0.19 per cent.

( With inputs from ANI )

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