Investors richer by over Rs 2 lakh crore in Friday's market rally
SBI reported a whopping 81% year-on-year increase in net profit to Rs 6,451 crore for the quarter ended March 31
Investors on Dalal Street made Rs 2.42 lakh crore on May 21 as markets witnessed heavy buying in index majors HDFC twins, ICICI Bank and Axis Bank with the benchmark BSE Sensex reclaiming 50,000-mark.
The 30-share BSE Sensex jumped 975.62 points, or 1.97%, to 50,540.48, while the 50-share NSE Nifty index advanced 269.25 points, or 1.81%, to 15,175.30.
Supported by across-the-board buying, the market capitalisation of BSE-listed companies jumped to Rs 218.06 lakh crore from Rs 215.64 lakh crore on May 20.
As many as 28 stocks in the Sensex pack ended in the green with HDFC Bank gaining the most 4.48%. It was followed by State Bank of India (up 4.30%), IndusInd Bank (up 4.18%) and ICICI Bank (up 3.86%).
SBI rallied after it posted better-than-expected March quarter results. The public sector lender reported a whopping 81% year-on-year increase in net profit to Rs 6,451 crore for the quarter ended March 31. India’s largest bank had posted a net profit of Rs 3,551 crore for the same period last year.
Among the sectoral indices on BSE, the Bankex and Finance indices advanced over 3% each. Telecom, Power, Utilities and Realty also gained over 1%.
Experts view
Vinod Nair, Head of Research at Geojit Financial Services said, “Domestic equities witnessed strong rebound after being lacklustre for two days following the weak global market. The easing covid concerns, appreciation in rupee and recent positive global data helped the market. The volatility index is reducing gauging outperformance to continue. All sectors were in positive territory with financial stocks leading the rally supported by strong Q4 results of largest PSU bank SBI and RBI’s Central Board meeting.”
S Ranganathan, Head of Research at LKP securities added that banks led the charge today buoyed by SBI earnings as bulls went on a rampage with stimulus hopes and transfer of surplus by the Central Bank to the GOI kept the street bullish. The broader market too witnessed good activity as the curve of daily corona cases displayed a declining trend.