The Indian equity market witnessed a strong opening on Wednesday morning with the Nifty up 0.46 percent or 46.40 points while the Sensex added 236 points in the morning trade. Bank Nifty was the standout sector with the index jumping 1.9 percent after the government approved recapitalization plans of Rs 2 lakh, 11 thousand crore for the ailing PSU banks.
The bull charge was led by Punjab National Bank which zoomed over 30 percent while Bank of Baroda spiked 22.95 percent followed by Bank of India which gained 21.17 percent. State Bank of India was the other top gainer which added 17.88 percent in the morning trade.
From the midcap Index, Union Bank of India jumped 22.18 percent while IDBI Bank was up over 16 percent. Allahabad Bank and Andhra Bank were the other top banking stocks that were up in the morning trade.
The stocks which gained the most in the NSE included SBI, ICICI Bank and Larsen & Toubro followed by UltraTech Cement and Axis Bank. The most active stocks apart from SBI and ICICI Bank were Bank of Baroda, Punjab National Bank and Axis Bank.
On the BSE, the top gainers were all the banking stocks including Punjab National Bank, Bank of Baroda, Bank of India, Union Bank of India and Canara Bank.
The stocks which hit new 52-week high on the NSE included State Bank of India, Dilip Buildcon, Berger Paints, VIP Industries, KNR Constructions and Rain Industries. On the other hand, Keltech Energies, Beekay Steel Industries, Sayaji Industries, Dr. Agarwals Eye Hospital and HEG were some of the few stocks that hit new 52-week high on the BSE.
The market breadth was strong on the NSE with 30 stocks advancing as against 20 declines while on the BSE, 1100 advanced and 1118 declined.Ashwani Gujral of ashwanigujral.com has a buy on Bank of India with a stop loss of Rs 136, target of Rs 148 and a buy on Punjab National Bank with a stop loss of Rs 134, target of Rs 146. He also has a buy State Bank of India with a stop loss of Rs 250, target of Rs 262.