Led by banks, Sensex upswing continues for third day

The Bombay Stock Exchange benchmark Sensex gained for the third day in a row on heavy purchases by funds of fundamentally strong stocks led by the banking and capital goods segments.

Opening on a weak note, the Sensex rebounded in volatile trade to end with a gain of 42.80 points at 11,371.85. It moved between 11,492.10 and 11,176.55 points during the day.

However, the 50-share National Stock Exchange index Nifty fell by 10.75 at 3,470.00, after moving between 3,517.25 and 3,435.30.

Buying was greater in the banking, capital goods and healthcare sectors on good earnings by blue-chip companies.

The banking index gained the most by rising 2.41 per cent to 5,726.59, after ICICI Bank, the second-largest lender by assets, got a good rating from Goldman Sachs on improved results.

ICICI Bank gained 8.20 per cent to Rs 467.95, Federal Bank 5.54 per cent to Rs 187.80, Axis Bank 5.45 per cent to Rs 557.55 and Yes Bank 3.20 per cent to Rs 78.90.

The capital goods index was the second-best performer, rising 1.57 per cent to 8,071.54, as stocks of Larsen and Toubro, BHEL, BEML, and Havells recorded handsome gains.

The market also regained strength as major players bought to cover their pending positions ahead of the expiry in the derivative segment for April on Wednesday.

The healthcare sector was the third-largest gainer, adding 0.95 per cent at 3,093.44, despite a fall in the stocks of Ranbaxy Lab and Wockhardt Ltd on weaker earnings in the fourth quarter. The segment was supported by Cipla, a second-biggest drugmaker by market value, which rose by Rs 4.35 at Rs 243.70.

However, the upsurge was checked and gains got reduced as shares of consumer durables, realty, power, PSUs, metals, teck, auto, oil and gas, FMCG and IT recorded fresh losses.

The consumer durables index fell 2.77 per cent to 1,762.52, realty 2.42 per cent to 2,202.03, power one per cent to 2,128.29, PSUs 0.96 per cent to 5,919.22, metal 0.95 per cent to 7,097.14, teck 0.72 per cent to 2,119.61, auto 0.71 per cent to 3,450.73, oil and gas 0.54 per cent to 8,046.11, FMCG 0.08 per cent to 2,109.79 and IT 0.03 per cent to 2,555.60.

The smallcap index fell 1.01 per cent to 4,027.14 and midcap index by 0.44 per cent to 3,584.28.