Sensex Jumps 300 Points, Nifty Above 10,850 Led by Banking Stocks

BSE Sensex and NSE’s Nifty 50 advanced on Friday, extending gains for a thrid day, led by banking stocks. An afternoon rally in US stocks also boosted sentiment despite mixed cues from Asian markets. Stocks in Japan fell, while Sydney, Seoul and Hong Kong saw modest gains.

In the US, the the S&P 500 Index erased a drop of almost 3% in its afternoon recovery—the biggest upward reversal since 2010. Oil prices fell over 4%, retreating from an 8% rally in the previous session as the oil market focused on signs of faltering global economic growth and record production of crude.

Rupee gains against US dollar
The rupee strengthened marginally against the US dollar, tracking gains in its Asian peers as a government shutdown in the US weighs on the dollar. At 9.10am, the rupee was trading at 70.06 a dollar, up 0.42% from its Thursday’s close of 70.36. Rupee opened at 70.06 a dollar.

The 10-year gilt yield was trading at 7.27% from its previous close of 7.276%. So far this year, the rupee has declined 8.85%, while foreign investors have sold $4.61 billion and $6.84 billion in the equity and debt markets, respectively.

United Bank of India shares jump 11% on govt capital infusion
The shares of United Bank of India jumped as much as 11.4% to Rs 12.85 per share after the government decided to infuse Rs 2,159 crore in the bank as part of Rs 28,615 crore capital infusion to be done in about half a dozen banks.

Sensex, Nifty rise over 0.8%
The BSE Sensex traded 310.24 points, or 0.87%, up at 36,117.52, and the Nifty 50 rose 77.40 points, or 0.72%, to 10,857.20. The BSE midcap and smallcap indices rose 0.46% and 0.54%, respectively. All the sectoral indices on BSE traded in positive territory led by finance, which was up 1%. Capital goods, consumer durables, bankex and basic materials rose over 0.8%.

HDFC group surpasses Tatas in market cap
Financial services conglomerate HDFC group has become the most valuable business house in the country, surpassing Tatas, with the cumulative market valuation of its five listed companies surging to Rs10.40 trillion.

At close of trade Thursday, the combined market valuation of five HDFC group firms stood at Rs10,40,689.89 crore on BSE. HDFC Bank with a market capitalisation of Rs 572,754.19 crore is the country’s third most valuable firm after TCS and RIL.

HDFC has a market cap of Rs 334,684.54 crore, HDFC Standard Life Rs 78,824.31 crore, HDFC AMC Rs 31,540.03 crore and Gruh Finance Rs 22,886.82 crore. As many as 22 Tata group firms have a combined market valuation of Rs10,38,290.08 crore, as per data available on BSE Thursday.

Oil prices rise, gold steady
Oil
prices jumped as much as 3% to win back a chunk of the ground they lost in the previous session, but growth in U.S. crude stockpiles and ongoing concerns about the global economy kept markets under pressure. Brent crude was up $1.18, or 2.26%, at $53.34 a barrel, having earlier risen as much as 3.1%.

It dropped 4.24 percent, or $2.31, the day before to settle at $52.16 per barrel. US WTI crude futures, were at $45.62 a barrel, up 2.26%, or $1.01, after earlier rising 3.6%. They ended Thursday down 3.48 percent, or $1.61, at $44.61 a barrel.

Gold prices were steady near six-month highs, supported by worries over economic growth but pressured by gains in global equity markets. Spot gold had risen 0.1% to $1,276.15 per ounce. The metal on Wednesday hit its highest level since June 19 at $1,279.06. US gold futures inched down 0.2 percent to $1,278.1 per ounce.