The Indian equity benchmarks surged on Friday on the back of strong buying interest in banking and financial services shares after the country’s largest lender by assets reported record profit of Rs 6,451 crore in quarter ended March 2021. New coronavirus infections remaining below the 300,000 mark for a fifth straight day, also added to bullish sentiment on Dalal Street, analysts said. The Sensex surged as much as 1,013 points to hit an intraday high of 50,577.97 and Nifty 50 index touched an intraday high of 15,183.95.
The Sensex climbed 975 points or 1.97 per cent to close at 50,540 and Nifty 50 index surged 269 points or 1.81 per cent to close at 15,175.
Banking and financial services shares witnessed strong buying interest after the country’s largest lender – State Bank of India’s – net profit jumped of 80 per cent in March quarter to record profit of Rs 6,451 crore. Its asset quality saw an improvement as its gross non-performing assets came in at 4.98 per cent as against 6.15 per cent during the March quarter of last year. Gross NPAs stood at Rs 1,26,389 crore.
All the 11 sector gauges compiled by the National Stock Exchange ended higher led by the Nifty Bank index’s 4 per cent or 1,300 point gain. Nifty PSU Bank, Private Bank and Financial Services indexes also rose between 3-4 per cent.
Mid- and small-cap shares also witnessed buying interest but underperformed their larger peers with a gain of 0.9 per cent and 0.5 per cent each respectively.
State Bank of India was top Nifty gainer, the stock climbed nearly 5 per cent to close at Rs 403 after stellar March quarter earnings. HDFC Bank, IndusInd Bank, ICICI Bank, Axis Bank, HDFC, Kotak Mahindra Bank, Bharti Airtel, Mahindra & Mahindra and UPL were also rose between 1.5-4.75 per cent.
On the flipside, Power, Grid, Indian Oil, Eicher Motors and Dr Reddy’s Labs were among the notable losers.
The overall market breadth was extremely positive as 1,959 shares ended higher while 1,161 closed lower on the BSE.