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Sensex jumps 1,000 points, Nifty maintains above 9,300 mark

Sethuraman N R/Bengaluru
Filed on May 27, 2020

Axis Bank shares rose as much as 6.2 per cent in the morning.

Indian shares rose in volatile trading on Wednesday as investors sought bargains in beaten-down banking stocks, while Axis Bank gained after a report said private equity group Carlyle was in discussions with the lender for a fund infusion.

The Nifty banking index rose 2.5 per cent, with Axis Bank advancing 5 per cent and heavyweight ICICI Bank gaining 4 per cent.

The index lost 8.3 per cent last week and is down 44 per cent so far this year as the sector, already under pressure from over $100 billion of bad debt, stares at more defaults by businesses hit by the Covid-19 pandemic.

Axis Bank shares rose as much as 6.2 per cent in the morning after the Economic Times newspaper reported private equity group Carlyle may invest $1 billion for an 8 per cent stake in the bank.

"Financials are seeing buying interest from institutional players. Banks especially are seeing some bottom fishing after being beaten down for the past few days," said Deepak Jasani, head of retail research at HDFC Securities.

Jasani, however, added that the medium-term outlook for banks remain weak.

The NSE Nifty 50 index  was at 9,326.05 up 297.00 or 3.29 per cent, while the S&P BSE Sensex gained over 1,041.08 points or 3.40 per cent to touch 31,650.38.

Asian shares slipped on concerns about rising tensions between the United States and China. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.4per cent at 0556 GMT.

The number of coronavirus cases in India surged past 151,700 as of Wednesday, with growth rate of new infections showing no sign of slowing even as the country starts to ease its strict lockdown.

Shares of Titan Company Ltd fell as much as 2.7per cent after the company said on Tuesday it saw "virtually zero sales" during the first six weeks of the lockdown. 

India's first-quarter GDP growth is likely to be its weakest since 2012, a Reuters poll predicted. - Reuters

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