The Hindu : Business : Sensex jumps 129 points

Online edition of India's National Newspaper
Tuesday, Jul 25, 2006

Business

Business

Sensex jumps 129 points

MUMBAI: Expectations of a 25 basis point hike in interest rates and a proposed rights issue by State Bank of India (SBI) dispelled early bearishness and the stock market benchmark, Sensex, closed 129 points up at 10215.37 on Monday.

Led by the banking sector, the market bounced back from the early low and rallied smartly on the news that SBI had approached the Finance Ministry for floating a rights issue to meet core capital requirements. The market also expected a quarter point rise in interest rates by the Reserve Bank of India (RBI) in its quarterly policy review on Tuesday, which in turn, would help the banking industry to strengthen their bottomlines, market players said.

Initially touching the day's low of 9875.35, the benchmark 30-share sensitive index (Sensex) later recovered sharply and even spurted to a high of 10252.75 before closing at 10215.37 against last Friday's close of 10085.91, a net rise of 129.46 points or 1.28 per cent.

On the National Stock Exchange, the S&P CNX Nifty firmed up by 40.85 points or 1.39 per cent to 2985.85.

Shares of SBI witnessed a dramatic jump in the last 30 minutes after the bank's statement on a proposed rights issue.

Reflecting a surge in bank stocks, the Bankex flared up by 202.20 points or 4.83 per cent to 4388.67.

PTI

Printer friendly page
Send this article to Friends by E-Mail

Business