Nifty above 25,100 level; PSU bank shares in demand

The key equity benchmarks continued to trade with modest gains in morning trade. The Nifty traded above the 25,100 level. PSU bank shares extended gains for the second consecutive trading session.

At 10:30 IST, the barometer index, the S&P BSE Sensex, added 375.52 points or 0.46% to 82,564.51. The Nifty 50 index rose 120.90 points or 0.48% to 25,121.20.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.88% and the S&P BSE Small-Cap index added 0.93%.

The market breadth was strong. On the BSE, 2,675 shares rose and 1,106 shares fell. A total of 220 shares were unchanged.

Economy:

India?s forex reserves dropped by $1.237 billion to $691.485 billion for the week ended May 30, the RBI said on Friday.

For the week ended May 30, foreign currency assets?a major component of the reserves?fell $1.952 billion to $584 billion, according to the RBI data.

The gold reserves increased by $723 million to $84.305 billion during the week, the RBI said.

The Special Drawing Rights (SDRs) were down by $2 million to $18.569 billion, the apex bank said.

India?s reserve position with the IMF was also down by $6 million at $4.395 billion in the reporting week, the apex bank data showed.

Buzzing Index:

The Nifty PSU Bank index rose 1.71% to 7,222.05. The index rose 2.3% in the two consecutive trading sessions.

UCO Bank (up 4.34%), Bank of India (up 4.2%), Indian Overseas Bank (up 3.71%), Punjab & Sind Bank (up 3.61%), Bank of Maharashtra (up 3.49%), Union Bank of India (up 2.75%), Canara Bank (up 2.63%), Central Bank of India (up 2.54%), Punjab National Bank (up 2.28%), and Indian Bank (up 2.14%) advanced.

Stocks in Spotlight:

PNC Infratech added 3.52% after the company received a letter of acceptance (LOA) worth Rs 239.94 crore from PWD-Rajasthan for the construction of a flyover in Bharatpur, Rajasthan.

Mahindra EPC Irrigation rose 1.39% after the firm received an order worth Rs 4.32 crore from the water resources department for allied works related to the implementation of a community micro irrigation project.

Lupin rose 0.05%. The company announced that it has received tentative approval from the U.S. Food and Drug Administration (US FDA) for its abbreviated new drug application for oxcarbazepine extended-release (ER) tablets.

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