BSE Sensex up 100; metal, IT stocks up; Bank Nifty rebounds

Moneycontrol Bureau

Indian shares surged in the afternoon trade led by recovery in metal, IT and telecom stocks. Banking stocks recouped losses despite Cobrapost naming major PSU banks and insurance companies in its press conference on Monday.

The Sensex was up 100 points at 19675 and the Nifty was up 27 points at 5971. About 1113 shares advanced, 773 shares declined, and 122 shares were unchanged.

In its continuing expose on the involvement of leading financial institutions in money laundering, media website Cobrapost Monday said that 23 major banks and insurance companies were part of the racket.

Life Insurance Corporation, State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Tata AIG, Dhanlaxmi Bank, Indian Bank, IDBI Bank, Yes Bank, Federal Bank, Reliance Capital, Birla Sunlife were  among those named by Cobrapost in the scam. Full article

Asian Paints, Hindalco, Tata Steel, Reliance Industries and TCS were key gainers in the Nifty.

Kotak Mahindra Bank, HDFC Bank, Ambuja Cements, ITC and Lupin were major losers.

Indian services growth eased for third straight month now. In April new orders came in at a much slower pace, prompting firms to rein in hiring plans, a business survey showed on Monday.

The HSBC Services Purchasing Managers' Index, based on a survey of around 400 companies, fell to 50.7 last month, its lowest since October 2011 and the weakest reading in thcurrent expansion cycle. The index had stood at 51.4 in March. Full article

In commodities, Brent crude pulled back above USD 105 per barrel while gold is relatively stable at USD 1475 per ounce.

In currencies, euro rallied to 1.314, dollar index at 82, while yen weakens towards 100 per dollar on strong US data.