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Sensex Rises Over 150 Points, HDFC Bank Leads Rally In Banking Shares

HDFC Bank shares ended 3.59 per cent higher at Rs 1,375, paring gains on some profit-taking.
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Sensex Rises Over 150 Points, HDFC Bank Leads Rally In Banking Shares
Sensex rose over 150 points while the broader Nifty closed above its crucial psychological level of 8,800 on the back of buying in banking shares after the RBI allowed foreign investors to resume buying in HDFC Bank Ltd. The Sensex rose 167 points to close at 28,469 and Nifty advanced 44 points to shut shop at 8,822.

Shares of HDFC Bank rose as much as 9.5 per cent to a record high of Rs 1,454, after the Reserve Bank of India removed the bank from the ban list for foreign institutional investors' buying as aggregate foreign shareholding in the bank fell below the prescribed limit under the foreign direct investment policy. The RBI in notification on Thursday said "the aggregate foreign shareholding through American Depository Receipts (ADR)/Global Depository Receipts (GDR)/ Foreign institutional Investors (FIIs)/Foreign Portfolio Investors (FPIs)/ Foreign Direct Investment (FDI)/Non-Resident Indians (NRIs)/ Persons of Indian Origin (PIOs) in M/s HDFC Bank Ltd. have gone below the prescribed limit stipulated under the extant FDI Policy. Hence the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect."

HDFC Bank shares ended 3.59 per cent higher at Rs 1,375, paring gains on some profit-taking.

"Some consolidation was due in the market and that's what the market has been doing... Don't think the market will give way easily," said Neeraj Dewan, director at Quantum Securities.

On the sectoral front, buying was visible in banking and pharma shares both the indices rallied over 1.5 per cent. On the other hand, IT and metal shares witnessed selling pressure.

Pharma stocks rose with Sun Pharmaceutical Industries among top per centage gainers.

Meanwhile, the operator of the NSE index said on Thursday it would add Indian Oil Corp and Indiabulls Housing Finance as new constituents from March 31 and drop Idea Cellular Ltd and Bharat Heavy Electricals Ltd.

Idea Cellular fell 3 per cent while BHEL was down more than 1 per cent.

The broader markets traded in-line with the benchmark indices as mid-cap and small-cap indices rose over 0.5 per cent each.

The overall breadth was neutral as 1,419 shares ended higher while 1,394 closed lower on the BSE.

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