Sensex gains 331 pts, banks surge

Sensex gains 331 pts, banks surge

Mumbai: Hectic buying by funds helped the Bombay Stock Exchange benchmark Sensex on Wednesday regain the 9,000 level at close after six trading sessions.

The bellwether index climbed 331.19 points at 9,026.72 in highly volatile trade after a promising start. Banking shares were the clear winners, with ICIC Bank and HDFC Bank shooting up by 9.55% and 8.63% respectively.

Marketmen said buying activity picked up in last one- hour trading as major market players covered their long pending positions ahead of Thursday’s settlement in the derivatives segment.

They said the rise in Sensex on Wednesday is significant considering the cautious approach of investors ahead of weekly inflation data which will be released on Thursday.

Sensex had slipped below 9,000 level on 17 November after a series of relentless selling by FIIs on fears global economic turmoil getting prolonged after more countries in Europe and Japan joined the list of nations in economic recession.

The broader index Nifty on National Stock Exchange index also rose by 98.25 points at 2,752.25.

Banking sector index gained 5.96% at 4,625.23, Brokers said banking share were over sold in the past since the financial turmoil emerged in the US.