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Sensex up over 1000 points, Nifty above 14,900 after glitch; Banks's fuel the rally

Ruchit Purohit Feb 24, 2021

Indian markets on Wednesday, February 24 stressed the market participants as trading activities in NSE (National Stock Exchange) were halted due to a technical glitch. However, all segments in the BSE & NSE were operational in the extended market hours from 3:30 pm IST.

After resuming, markets witnessed a massive rally backed by banking stocks which led the BSE Sensex to close above 1000 points and the Nifty Banking index also adding 1400 points.

The 30-share pack Sensex closed at 50,781.69, up 1,030 points or 2.07 per cent gains. Nifty-50 closed at 14,982, up 274 points or 1.86 per cent.
Nifty Bank surged 3.80 per cent to close at 36,452.30.

The Banking stocks rallied after the Finance Minister tweeted that restrictions on the participation of private banks in government business is now possible and private banks can also equally participate in the development of the country's economy.

"Embargo lifted on the grant of Govt business to private banks. All banks can now participate. Private banks can now be equal partners in the development of the Indian economy, furthering Govt's social sector initiatives, and enhancing customer convenience", Nirmala Sitharaman, Finance Minister of India tweeted.

HDFC Bank became the top gainer of Nifty and contributed the most by adding over five per cent in the intraday trade. Shares of Axis Bank and ICICI Bank also surged over four per cent each.

UPL ended as the top loser of Nifty by losing over two per cent at 553.95/share on news of the company's Gujarat plant catching fire and leading two people to death.

On the broader market front, BSE Midcap and Smallcap indices closed higher by 0.77 per cent and 1.08 per cent. Aditya Birla Fashion gained over six per cent in the Midcap index after the company announced their second major deal with Tarun Tahiliani - India's Ace Fashion Designer.

Sectorally, all sectors ended green except for IT. Private bank and PSU bank gained added the most. Shares of Union Bank, Bank of India and Central Bank added over five, four and four per cent respectively.