Markets end flat on Friday. SBI gains over 2% as banking stocks rally

Benchmark indices settled on a flat note tracking mixed cues from global peers after ECB unexpectedly reduced its monthly asset buys but pledged to keep its quantitative easing (QE) program beyond 2017, if needed. Nifty saw the biggest weekly gain since the first week of September and comfortably maintained its crucial 8250 levels in today’s session.

S&P BSE Sensex settled the day 53 points higher at 26,747 while Nifty50 gained 15 points to end at 8,262.  In broader markets, BSE Midcap gained 0.21% while BSE small cap was up 0.52%.

Banking sector gained after RBI reversed its order forcing lenders to surrender all their extra cash and place it under the cash reserve ratio.

Banking index in both headline indices settled the day 1% higher. All except 2 (Kotak Mahindra Bank and HDFC Bank) banking stocks ended in green on BSE Sensex led by gains in ICICI Bank SBI, Bank of Baroda and PNB. SBI (2.37%) was the top gainer on BSE Sensex.

Nifty PSU Bank index rose for a second straight session ending almost 2.48% higher. The index rose almost 4% intra-day. IDBI Bank, Oriental Bank, Allahabad Bank, Syndicate Bank and Bank of India were up between 2% and 5%.

The Nifty IT index pared gains after gaining 1.2% to end the day 0.58% higher. The gains were led by Tata Elxsi and MindTree while BSE IT ended 0.37% higher.

ONGC, Tata Motors, Asian Paints, RIL and NTPC were other gainers on BSE Sensex while Coal India, HDFC and Cipla were the losers.

Auto sector was trading in red after disappointing auto sales numbers post demonetisation move by the Modi government. Bajaj Auto was the biggest laggard on BSE Sensex, down 2.05%. M&M and Hero Moto were also down over 1%.

Steel Authority of India (SAIL) gained 4% at intra-day, also its 52-week high on the BSE, even after it reported a net loss of Rs 731 crore in September 2016 quarter (Q2FY17). The stock ended 3.37% higher. The country’s largest state-owned steel major had posted a loss of Rs 1,109 crore in the same quarter last fiscal.

Here are some picks from the week gone by.

Company: DLF Ltd. CMP: 114.90 Mastermind
Company: Federal Bank CMP: 71.20 Mastermind
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Company: Hindustan Unilever CMP: 845.05 Mastermind
Company: Voltas Ltd. CMP: 326.85 Mastermind
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