Banking stocks surge 5.35% on global cues

Private sector lender ICICI Bank led rally in banking stocks, whose index shot up by over 5 per cent in early trade on the Bombay Stock Exchange today on a flurry of buying by funds in the backdrop of a rally in global markets on easing worries over financial markets.

The BSE Banking index surged by 246.04 points, or 5.35 per cent to 4,848.19 in early trade.

Trading sentiment turned bullish on the domestic bourses following a rally in the overseas markets after positive US data eased global recession concerns.

Analysts said buying activity in banking sector stocks gathered momentum on hopes that the Reserve Bank of India may lower rates.

All the 18 constituents of the Bankex were trading in positive zone with gains of up to 10.09 per cent.

ICICI Bank surged by 7.45 per cent to Rs 375.50 after surging to Rs 376.70. Nearly, 14.18 lakh shares changed hands at 1045 hrs.

The country's largest lender, State Bank of India, shot up by 5.27 per cent to Rs 1,130.60 after rising to Rs 1,137.20. Over 2.27 lakh shares changed hands on the BSE.

Further, HDFC Bank gained 4 per cent to Rs 1,037, Axis Bank by 6.98 per cent to Rs 447, Bank of India by 4.32 per cent to Rs 229.50, Kotak Bank by 10.09 per cent to Rs 330 and Punjab National Bank by 6.42 per cent to Rs 431.