India Stocks: Financials, banks boost Indian shares to best day in more than two weeks

Craftsman Automation

25/06/2024 11:24

(Updates at close)
    By Sethuraman N R and Hritam Mukherjee
       BENGALURU, June 25 (Reuters) - Indian benchmarks settled
at record closing highs on Tuesday, posting their best day in
more than two weeks, lifted by a surge in heavyweight financial
and bank stocks that have lagged sectoral peers so far this
year. 
    The NSE Nifty 50 index  .NSEI  added 0.8% at 23721.3, while
the S&P BSE Sensex  .BSESN  advanced 0.9% to 78053.5, as of
03:30 p.m. IST.
    Financials  .NIFTYFIN  gained roughly 2% and banks
 .NSEBANK  rose 1.7%. The two indexes were the top sectoral
percentage gainers.
    Private lender HDFC Bank  HDBK.NS , the heaviest stock on
the benchmark Nifty, climbed 2.3%. Peer ICICI Bank  ICBK.NS ,
whose market capitalisation crossed $100 billion, closed at a
record high. 
    The outperformance in banking stocks is the primary boost to
markets, which are lacking any major domestic trigger, said Ajit
Mishra, senior vice president, research, at Religare Broking.
    Analysts said that financials and banks will continue to see
buying as they have been laggards this year, with their 9% rise
well below the 24%-43% jump in metals, autos and realty stocks. 
    The benchmark Nifty 50 index has surged 8.4% from the dip
seen on June 4, in a post-election rally.
    Among individual stocks, battery maker Amara Raja Energy and
Mobility  AMAR.NS  soared 19% after inking a licensing deal with
a unit of China-based Gotion High Tech  002074.SZ .
    Amara's gains pushed domestically-focussed small-caps
 .NIFSMCP100  to close 0.14% higher, after the gauge hit a
record high earlier. 
    Automobile parts maker Craftsman Automation  CRAF.NS  surged
13% on plans to acquire aluminium die-cast parts maker Sunbeam
Lightweighting Solutions. 
    On the flip side, Bandhan Bank  BANH.NS  fell 2.2% after the
Reserve Bank of India appointed a director to the lender's
board, a move generally seen as an increase in oversight of a
bank's operations. 
    "We will see more stock-specific moves in the small- and
mid-caps. This will keep happening until the quarterly earnings
season," Neeraj Dewan, director at Quantum Securities said.
    
    

 (Reporting by Sethuraman NR and Hritam Mukherjee in Bengaluru;
Editing by Savio D'Souza, Janane Venkatraman and Mrigank
Dhaniwala)
 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))