Bank Nifty reaches the peak of its life; Sensex records closing spike

Bombay : Bank Nifty posted an all-time high for the second consecutive session on Wednesday, led by Kotak Mahindra Bank and HDFC Bank, while NSE Nifty ended up slightly higher by 6.25 points or 0.03% at 18,409.65 .

The 12 Constituent Bank Nifty hit a lifetime high of 42,611.75 but pared some gains to close 0.38% higher at 42,535.

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Expectations of gradual credit growth and declining provisions have put banks at the top of investors’ charts.

Kotak Mahindra Bank surged, gaining 2.8% to close at 1965.9, followed by HDFC Bank, which closed percent higher at 1,632.90.

“Kotak Bank and HDFC Bank will lead the index higher going forward, supported by stocks such as ICICI Bank, Axis and SBI,” said Gautam Arora, derivatives analyst at Religare Broking. His Bank Nifty short-term target is 43,500-44,000.

“We are positive on the banking sector and now even smaller PSUs such as Bank of India and Union Bank of India have started to perform alongside heavyweights like SBI,” said Siddhartha Khemka, Head of Banking Research. retail, Motilal Oswal Financial Services.

Bank Nifty rose 32.5% from its 52-week low of 32,155.35 on March 8, outperforming the Nifty which, at Wednesday’s close of 18,410, is trading one percent below from its record high of 18,604.45 reached on October 19 last year.

The BSE Sensex also rose 107.73 points or 0.17% to a record close of 61,980.72, helped by buying at bank tellers. During the day, the index hit a 52-week high at 62,052.57, up 179.58 points.

Sensex’s lifetime high is 62245.43, which it hit on October 19 last year.

Among Sensex stocks, Kotak Mahindra Bank, Hindustan Unilever, Dr Reddy’s, HDFC Bank, Bharti Airtel, HDFC and Tata Consultancy Services were among the winners. Bajaj Finance, Tata Steel, NTPC, Bajaj Finserv, UltraTech Cement and IndusInd Bank were among the laggards.

Foreign Institutional Investors (FIIs) sold shares worth 386.06 crore on Wednesday, according to exchange data.

“While the domestic market has started trading around all-time highs, it is trending undecided following recent geopolitical tensions and weak performance from global peers. Domestic macro indicators and inflows from FII are favorable given high valuations, but domestic markets may behave cautiously in the short to medium term,” said Vinod Nair, head of research at Geojit Financial Services.

In the broader market, the BSE mid cap index fell 0.66% and the small cap index fell 0.34%.

Among the sector indices, bankex rose by 0.47%, industry rose by 0.37%, capital goods by 0.36%, technology by 0.30% and IT by 0. 20%. However, metals fell 1.49%, while utilities fell 1.40%.

“Markets moved in a narrow range with bouts of sideways movement in intraday trades, but selective buying in late trades helped key indexes end in positive territory,” said Shrikant Chouhan, head of research. on shares (retail), Kotak Securities Ltd.

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Carol N. Valencia