Banks go berserk on street to set date for Sensex with 80k

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All round rally in banking stocks lifts Sensex to record levels

By S Jha

New Delhi, July 3: The rule of jungle says that when elephants walk by in a herd, others should respectfully watch from the sidelines. The large private banks are the elephants of the equity market, and when they move the indices go trending.

An overnight sharp rally in the ADR of HDFC bank on the US bourses set the tone for the Indian equity markets on Wednesday. The Bank Nifty on a weekly expiry day again went trending within a gap of a few days.

The weightage of the HDFC Bank, Kotak Mahindra Bank, Axis Bank, and ICICI Bank is more than 70 per cent of the Bank Nifty. They also command leadership weightage in Sensex and Nifty.

The HDFC Bank shot to a three per cent plus rally with the ringing of the morning bell. It was also responsible to send the Bank Nifty trending on Wednesday.

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But the Kotak Mahindra Bank had also denied any wrongdoing in the Hindenburg-Adani matter. The private banking behemoth sharply gained on the street.

In addition, the ICICI Bank, the Axis Bank, and the State Bank of India were also firm in the trade. They together gave a lift of 1000 points to Bank Nifty during the day.

The report that the HDFC Bank could witness a flow of $4 billion in its equity because of the index readjustment also gave a leg up to the banking behemoth.

The sharp move in heavyweight private banks pushed Sensex above the 80,000 mark for the first time in the history. Sensex, Nifty, and Bank Nifty have seen one of the quickest gains in the last month on the street.

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Nifty also cleared the congestion zone of 23900-24200 with the help of the private banks. Nifty at one point during the day was trading above 24300 level.

In the last hour of the trade, the defence stocks began trending. Mazagon Dock Shipyard led the rally in the defence stocks.

Soo, Cochin Shipyard also joined the party. Both the shipyard scrips gained eight per cent each to further extend their winning run on the street.

Besides, Zen Technology and Paras Space and Defence once more demonstrated that they are in sharp uptrends. Garden Reach Shipyard also reversed the losses during the day to turn green by the closing bells.

Also, the semi-conductor scrips were in strong demand on the street. Moschip was locked in the upper circuit. Kaynes Technology and Tejas Networks posted gains.

Disclaimer: This article makes no recommendation for buy or sell of shares of any company.

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