UCO Bank leads gainers in 'A' group

Bank stocks UCO Bank and Punjab National Bank gained as the latest data showing a sharp fall in wholesale price inflation in April 2013 raised hopes that the Reserve Bank of India (RBI) may further cut policy rates to perk up economic growth. A rate cut would boost credit offtake.

UCO Bank spurted 8.8% to Rs 81.60 and topped the gainers in the BSE's 'A' group. The stock rose on volume of 25.09 lakh shares, higher than average daily volume of 6.39 lakh shares in the past two weeks.

Punjab National Bank galloped 7.49% to Rs 822.95 and was second biggest gainer in 'A' group. The stock rose on volume of 3.29 lakh shares, higher than average daily volume of 1.70 lakh shares in the past two weeks.

The annual rate of inflation, based on monthly wholesale price index (WPI), eased sharply to 4.89% in April 2013, from 5.96% in March 2013, data released by the government on Tuesday, 14 May 2013, showed. Core inflation or non-food manufacturing inflation declined further to 2.74% in April 2013 from 3.41% in March 2013.

Infrastructure stocks GMR Infrastructure and IRB Infrastructure gained after the Reserve Bank of India relaxed overseas borrowing norms for infrastructure firms. Till now companies were not allowed to access external commercial borrowings (ECBs) to fund working capital or for general corporate purposes.

GMR Infrastructure jumped 7.03% to Rs 22.85 and was third biggest gainer in 'A' group.

IRB Infrastructure rose 6.28% to Rs 124.30 and was fifth biggest gainer in 'A' group.

Apollo Hospitals Enterprise surged 6.31% to Rs 965.85 after striking a record high of Rs 990.50 in intraday trade today, 15 May 2013. It was fourth biggest gainer in 'A' group. The company unveils FY13 results on 20 May 2013.

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