Sensex at day's high; SBI gains as asset quality improves

Its been a good day for the markets as they are way up on the positive trajectory. The BSE Sensex is up 116 points to 16,269, off 29 points from the day's high and a good 97 points up from the intraday lows

FP Staff May 21, 2012 14:10:27 IST
Sensex at day's high; SBI gains as asset quality improves

1:30 pm Its been a good day for the markets as they are way up on the positive trajectory. The BSE Sensex is up 116 points to 16,269, off 29 points from the day's high and a good 97 points up from the intraday lows. The NSE is also up 39 points to 4,930. The market breath continues to remain strong. On the NSE, 934 stocks advanced, while 454 declined.

European markets have also improved after opening marginally lower over worries about the euro-zone crisis. The rupee has also seen some relief as it is off its record low and trading at 54 .49 he currency had hit a new life low of 54.91 on Friday.

Sensex at days high SBI gains as asset quality improves

AFP

However, this does not mean that it is time to cheer as markets could fall to December low. "the weakness in the domestic currency is adding to the negative sentiment in India and that a retest of the December lows is very much on the cards, says Andrew Holland of Ambit Capital. He further added that there could be a bounce in the short term as the good news for India is that the oil prices are coming down.

Among the 30-share Sensex pack, 19 are in green. SBI is one of the top gainers on the Sensex as it has jumped by 4 percent. CLSA and Bank of America-Merrill Lynch upgrade the stock to "buy" citing asset quality improvements and recent under-performance in shares while Macquarie also raises its ratings, but just to "neutral", saying SBI is already the most expensive Indian public sector bank, as per Reuters.

Adani Enterprise is up 3.9 percent after standalone net profit jumped to Rs 170.5 crore from Rs 50 cr a year ago.

L&T is up 2 percent . The company has bagged an order worth Rs 744 crore.

Among mid-cap gainers are HFCL (20 percent), DB Realty (9.73 percent),Simplex Infra (9.68 percent), Jai Corp (8.2 percent), Reliance Capital (7.7 percent).

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