Bankex hits all-time high above 7,000
Banks rallied on easing interest rate worries and as 10-year bond prices scaled a six-month high on Wednesday.
10-year bond yield were near six-month lows at 7.52% from the previous close of 7.56% on lower oil and buying by pension funds and insurance companies.This reinforced the view that lending growth from the banking sector will remain strong. Globally, too, interest rate worries were soothed following a tame US inflation data.
The BSE Bankex has been on a roll in the past few months. From 4,051.44 on 19 July 2006, it has surged a whopping 69.44% in just under four months, to 6,864.02 by 14 November 2006. The BSE Bankex has clearly outperformed the broader indices, showing strong investor interest for banking sector. India’s premier exchange has advanced 34.15% during the similar period from 10,007.34 on 19 November, to 13,425.50 by 14 November 2006.
The BSE Bankex was the top gainer among the sectoral indices, up 193.42 points (2.82%), at 7,057.44. It had surged to an all-time high of 7,091.01. The previous high was 6,877.63 of 14 November 2006.
Leading the pack was State Bank of India (SBI), which jumped 4.72% to Rs 1,179.90, on a volume of 7.48 lakh shares. The stock had also struck a record high of Rs 1,184.40.
Other major gainers among banking stock were Punjab National Bank (up 5.76% to Rs 546), Kotak Mahindra Bank (up 5.75% to Rs 404.45), Indian Overseas Bank (up 3.8% to Rs 115), Bank of Baroda (up 4.51% to Rs 271.10), Oriental Bank of Commerce (up 4.37% to Rs 251), HDFC Bank (up 1% to Rs 1073), Canara Bank (up 2.36% to Rs 296.50), and Bank of India (up 7.05% to Rs 185.20).
ICICI Bank surged 2.63% to Rs 880, on 7.69 lakh shares. The stock hit Rs 888, a lifetime high. ICICI Bank was also boosted by reports that RBI has permitted the largest private sector bank to open new branches and off-site ATMs.
Banking stocks have witnessed an upward rally on strong credit growth, lower bond yields and enhanced treasury incomes. Most of the bank stocks have been in the limelight since September on expectations of a healthy set of numbers in the second quarter.
Analysts expect the net interest margins of banks to continue to do better in the coming quarters.
10-year bond yield were near six-month lows at 7.52% from the previous close of 7.56% on lower oil and buying by pension funds and insurance companies.This reinforced the view that lending growth from the banking sector will remain strong. Globally, too, interest rate worries were soothed following a tame US inflation data.
The BSE Bankex has been on a roll in the past few months. From 4,051.44 on 19 July 2006, it has surged a whopping 69.44% in just under four months, to 6,864.02 by 14 November 2006. The BSE Bankex has clearly outperformed the broader indices, showing strong investor interest for banking sector. India’s premier exchange has advanced 34.15% during the similar period from 10,007.34 on 19 November, to 13,425.50 by 14 November 2006.
The BSE Bankex was the top gainer among the sectoral indices, up 193.42 points (2.82%), at 7,057.44. It had surged to an all-time high of 7,091.01. The previous high was 6,877.63 of 14 November 2006.
Leading the pack was State Bank of India (SBI), which jumped 4.72% to Rs 1,179.90, on a volume of 7.48 lakh shares. The stock had also struck a record high of Rs 1,184.40.
Other major gainers among banking stock were Punjab National Bank (up 5.76% to Rs 546), Kotak Mahindra Bank (up 5.75% to Rs 404.45), Indian Overseas Bank (up 3.8% to Rs 115), Bank of Baroda (up 4.51% to Rs 271.10), Oriental Bank of Commerce (up 4.37% to Rs 251), HDFC Bank (up 1% to Rs 1073), Canara Bank (up 2.36% to Rs 296.50), and Bank of India (up 7.05% to Rs 185.20).
ICICI Bank surged 2.63% to Rs 880, on 7.69 lakh shares. The stock hit Rs 888, a lifetime high. ICICI Bank was also boosted by reports that RBI has permitted the largest private sector bank to open new branches and off-site ATMs.
Banking stocks have witnessed an upward rally on strong credit growth, lower bond yields and enhanced treasury incomes. Most of the bank stocks have been in the limelight since September on expectations of a healthy set of numbers in the second quarter.
Analysts expect the net interest margins of banks to continue to do better in the coming quarters.
posted by SY at 5:03 PM
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