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Sensex, Nifty Hit Four-Month Highs, Led By HDFC Bank

Sensex, Nifty Hit Four-Month Highs, Led By HDFC Bank

HDFC Bank, country's leading private sector bank reported strong loan growth amid Covid-19 crisis,

The domestic markets rose for a fourth straight session to touch 4-month highs on Monday, powered by strength in HDFC Bank and buying interest in other financial stocks. The S&P BSE Sensex index rose to 36,466.95 at the strongest level of the day, having begun up 292.04 points at 36,313.46 and the broader NSE Nifty 50 benchmark spiked to a high of 10,753.85, after opening stronger at 10,723.85.

At 11:00 am, the BSE Sensex was trading at 36,412.30, higher by 391 points or 1 per cent and the NSE Nifty was at 10,740.75, up 133 points or 1.2 per cent.

HDFC Bank, the country's leading private sector bank reported strong loan growth amid the Covid-19 crisis, on Saturday. HDFC Bank said its advances stood at Rs 10,04,500 crore as of June 30, 2020, compared to Rs 8,29,700 crore as of June 30, 2019. At the end of the January-March period, its loans had come in at Rs 9,93,700 crore. HDFC Bank shares gained 4 per cent to an intra-day high of Rs 1,116.85, their highest level since March 11. At 11:00 am, the shares were trading at Rs 1,107.95, up by Rs 33 or 3.1 per cent on the BSE.

Among other financial stocks, ICICI Bank shares were trading at Rs 365, higher by 1.1 per cent, on the BSE after the leading private lender announced on Sunday that its board will meet on July 8 to consider raising funds through an equity share sale in order to strengthen its balance sheet. IndusInd Bank, Bajaj Finance and SBI had also added 2.1-3.2 per cent each, on the BSE.

On the other hand, consumer goods giant ITC Ltd fell 0.7 per cent and Sun Pharma declined by 0.6 per cent on the BSE.

Meanwhile, analysts say key macroeconomic data as well as the first of the quarterly corporate earnings due this week will be watched closely for cues.

Official data on industrial production and retail as well as wholesale inflation will be released during the coming week. IT major Tata Consultancy Services (TCS) will kick off the earnings season by reporting its financial results for the April-June period.

The BSE market breadth was strong. Out of 2,564 stocks traded on the BSE, there were 1,495 advancing stocks as against 905 declines.