Sensex edges up as govt infuses capital into PSU banks

Shrugging off weak global cues, the BSE Sensex in a choppy trade today inched up after two days, led by gains in banking stocks following government's decision to pump Rs 22,915 crore into 13 PSU banks.
Hopes over passage of the GST bill in the ongoing session of Parliament and good progress in monsoon rains across the country also buoyed trading sentiment.
Shares of state-run banks such as Canara Bank, State Bank of India and Indian Overseas Bank turned buyers' fancy and recorded gains of up to 4.71 per cent.
The Centre has provided Rs 22,915 crore capital to 13 PSU banks including SBI, PNB and IOB to enhance lending operations and enable them to raise more money from the market.

Meanwhile, global oil prices eased on concerns over a glut in the industry, pulling down Brent by 0.30 per cent to USD 46.82 per barrel.
Consequently, shares of state-run oil marketing companies such as HPCL, IOC and BPCL were in limelight, surging by up to 5.09 per cent.

"Earnings released so far have failed to add more legs to the previous weeks' rallies, but with potential for GST clearance, optimism remained, and value buying was noticed at lower levels," said Anand James Chief Market Strategist Geojit BNP Paribas Financial Services.
The 30-share Sensex resumed higher at 27,790.05 and firmed up to 27,826.69 on emergence of buying in bluechips.

However, it fell afterwards to 27,637.98 before ending at 27,787.62, showing a rise of 40.96 points or 0.15 per cent.
The NSE Nifty closed 19.85 points or 0.23 per cent higher at 8,528.55 after shuttling between 8,540.05 and 8,476.70.
Broader markets displayed a mixed trend with BSE mid-cap rising 0.18 per cent, while the small-cap shed 0.11 per cent.
Overseas, Europe was lower amid a drop in oil prices and ongoing geopolitical tensions, despite US markets closing at all-time highs in yesterday's trade.
Asian indices ended mixed, Hong Kong, Japan, South Korea and Singapore were down 0.21 per cent to 0.60 per cent while China and Taiwan rose 1.37 per cent to 0.30 per cent.

In domestic market, 16 scrips out of the 30-share Sensex
pack finished higher.
Major gainers were, ICICI Bank (2.11 pc), Power Grid (1.90 pc), Lupin (1.52 pc), Tata Steel (1.27 pc), TCS (1.15 pc), Tata Motors (1.12 pc), RIL (1.11 pc), Adani Ports (1.06 pc) and ONGC (0.98 pc).
However, HUL fell 2.75 per cent followed by Axis Bank (1.06 pc), HDFC Bank (1.03 pc), M&M (0.84 pc), Coal India (0.81 pc) and Hero MotoCorp (0.77 pc).
Shares of Ultratech Cement gained 0.18 per cent to Rs 3,505.90 after it reported a 29 per cent growth in consolidated net profit at Rs 780.11 crore for the quarter ended June.

Jaiprakash Power Ventures surged 5.44 per cent to Rs 6.40 as JSW Energy will acquire its 500 MW thermal plant at Bina in Madhya Pradesh at an enterprise value of Rs 2,700 crore.
Among BSE sectoral indices, oil&gas rose by 1.90 per cent, followed by energy 1.41 per cent, power 0.64 per cent, utilities 0.54 per cent, healthcare 0.48 per cent, teck 0.44 per cent and industrials 0.37 per cent.
The market breadth was weak as 1,456 stocks declined 1,214 advanced and 166 ruled steady of total 2,836 stocks.
Total turnover fell to Rs 2,817.03 crore from Rs 3,033.87 crore yesterday.