Along with the performance of banking stocks, markets were also boosted by the minutes of the United States’ Federal Reserve’s July meeting, which indicated that the country’s central bank would not cut rates during its next policy meeting in September.
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A hike in the USA interest rates can potentially lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India.
Globally, markets turned cautious after a Federal Reserve policy maker said the U.S. economy is strong enough to warrant an increase in interest rates soon.
In order to increase capital base, state-run Bank of India has raised Rs 540 crore through monetisation of its non-core assets so far in 2016-17 and is planning to raise a similar amount in the rest of the year.
The Sensex touched a high of 28,199.10 points and a low of 27,942.65 points during the intra-day trade. The 30-share index rose 88.86 points or 0.31 per cent to 28,212.30. The gauge had gained 118.07 points in yesterday’s session.
The NSE 50-share Nifty was trading flat, marginally lower by 3.80 points or 0.04 per cent at 8,669.45.
In broader markets, the mid-cap index rose 0.52% while small-cap ended 0.45% higher.
In the domestic market, 22 scrips out of the 30-share Sensex pack ended lower while 8 finished higher.
However, Tata Steel rose by 1.32 per cent, Cipla (0.72 pct), HUL (0.61 pct), L&T (0.52 pct), ONGC (0.48 pct) and ICICI Bank (0.45 pct).
Among BSE sectoral indices, Utilities climbed 1.88 per cent followed by Power 1.83 per cent, Bankex 1.64 per cent, Infrastructure 1.59 per cent, Finance 1.26 per cent, Telecom 1.21 per cent, PSU 1.00 per cent, Healthcare 0.71 per cent and Oil&Gas 0.76 per cent.
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The market breadth remained positive as 1,670 stocks advanced, while 1,017 stocks declined and 179 ruled steady.
