Markets northbound banks, FMCG stocks gain

After an early recovery the markets continued the upmove on back of buying in banking, FMCG,  healthcare and capital goods stocks.

The Sensex gained 190 points to 18,178 and the Nifty jumped 51 points to 5464.

The banking stocks gained as the banking amendment bill which aims at amending Banking Regulation Act, 1949, the Banking Companies Act, 1970 and Banking Companies Act, 1980 was tabled in the parliament yesterday. The bill aimed at hiking voting rights to 10% a move that will make investment in state-owned banks more attractive. 

Back to markets, ICICI Bank was the top gainer on the Sensex, the stock surged 2.3% to Rs 1026, Cipla was trading at Rs 297 higher by 2%. J P Associates, Sterlite Industries, Hero Honda, ITC, Hindustan Unilever and Tata Power were also among the gainers. Meanwhile, TCS was the only loser on the Sensex, the stock was trading marginaly lower by 0.2% at Rs 1066.

All the sectoral indices were trading higher, The BSE banking index- Bankex was the top gainer, the index added 1.5% or 182 points to 12,419, FMCG index was higher by 1.13% to 3449. Metal, healthcare, capital gods, oil & gas and IT stocks also witnessed buying.

Kotak Mahindra Bank was the top gainer among the banking stocks, the stock jumped 2.6% to Rs 432. ICICI Bank, Indusind Bank, Yes Bank, Punjab National Bank, Federal Bank, Axis Bank and HDFC Bank were also trading higher by around 1% each.

Sugar stocks continued to gain consecutively for the second day, K M Sugar Mills was the top gainer among the sugar stocks, up 8.4% to Rs 4, Dhampure Speciality Sugars, Thiru Arooran Sugar, Oudh Sugar Mills, Jeypore Sugar Company, Dharani Sugar and Sakthi Sugars were also trading higher by 4-5% each.

The broader markets were also trading higher, the BSE mid-cap index was at 6584 higher by 40 points and the small-cap index added 54 points to 7871.

The overall market breadth remained extremely positive as 1497 stocks advanced while 757 stocks declined.