Stock Market: Axis Bank brings bulls on bourses
By S Jha
New Delhi, October 21: On a day trader looked to book profits to close their books ahead of Diwali, the private banks sprung the surprise by unleashing bulls on the bourses. Axis bank charged the indices full steam on the back of spectacular quarterly results, and lifted the Bank Nifty by over 900 points during the day.
Axis Bank had been trending on the stock markets from the levels of sub 800 level seen a few days ago, and it delivered one of the best financial result with its profit soaring. The scrip of the Axis bank jumped over nine per cent to close at Rs 900.
The phenomenal run of the scrip also saw the bank broke out decisively on the technical chart with huge volume. Axis Bank after the completion of the acquisition of the Indian operations of the Citi Bank is likely to join the big private banking league with a large base of the credit card holders. In the financial market, it is well known the Citi Bank had a robust customer base of the high networth individuals (HNIs), which could further bring cheer to the financial performance of the bank.
Along with Axis Bank, the likes of ICICI Bank and Kotak Mahindra Bank too joined the party and gained over two per cent each. ICICI Bank and HDFC Bank are the two heavyweight scrips of the Bank Nifty.
However, the broader market was on profit booking mode, with the market favouring the declines, while the IT pack, which had been trending on Thursday, remained largely flat to positive. But Reliance Industries ahead of its quarterly results was down by over one per cent, which capped the gains of the Nifty, which at one point during the first half of the session was up by over 100 points.
The FIIs on Friday broke its selling spree, and turned a net buyer with Rs 439 crore of the purchase of the equities. However, the domestic institutional investors were net sellers, having sold Rs 119 crores worth of equities.
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