Sensex spurts 220 points taking cues from Asian shares; banking in spotlight

Domestic equities made a firm start to the week in early Monday trade, as investors drew comfort from the rise in other Asian indices in an otherwise uncertain market sentiment, dealers said. Asian shares were up on hopes that Greece could strike a solution with its lenders in a desperate attempt to avoid being debt default ahead of the month-end deadline. Banking shares were in demand, helping the benchmark Sensex edge past 27,500-mark. At 10.05 am, the 30-share Sensex was quoted at 27,536.51, up 220.34 points or 0.8 percent from the previous close, while the broader 50-stock CNX Nifty was at 8,292.85, up 67.90 points or 0.8 percent. [caption id=“attachment_2305946” align=“alignleft” width=“380”]  Reuters[/caption] The market breadth was extremely positive with 1,179 stocks advancing against 503 declines on the BSE. Other Asian gauges such as Japanese Nikkei was up 0.8 percent and Chinese Hang Seng rose 0.4 percent in their early trade, while US stock futures and the euro displayed upward trend after a weak close on Friday. Banking shares were the star performers in early outings, as investors are hoping that an early solution to Greece debt case and improving macro-economic factors back home would result in demand for credit picking up going ahead. Among the gainers, HDFC Bank rose around 2 percent at Rs 1,050, Axis Bank 1.9 percent to Rs 562.50, ICICI Bank 1.5 percent to Rs 309.15 and SBI nearly a percent at Rs 262.60. Private steel major Tata Steel gained 1.4 percent to Rs 309.25 as a strike was suspended after UK Unions agreed for modified final salary pension scheme. Shares of automobile firms Bajaj Auto (Rs 2,431.20) and Tata Motors (Rs 437.40) were up over 1 percent each. However, software major Wipro fell 1.5 percent to Rs 554.40 and telecom major Bharti Airtel was down a percent at Rs 429.50.