Banking sector stocks, led by State Bank of India, climbed on the bourses on Wednesday on fund-based buying on easing interest rate worries and robust growth in industrial production, lifting the segment index to a record high of 7,091.01.
The BSE Bank index was top performer among the key indices and surged by 196.21 points at 7,060.23 after touching an all-time high of 7,091.01 points. The robust showing was on the back of strength in shares of SBI, HDFC Bank and ICICI Bank, extending support to benchmark Sensex, which touched a record high of 13,506.08 points.
Stock brokers said overnight surge in US stocks and a steep fall in US core producer prices, which eased worries of rate hike by the Federal Reserve and reports that RBI has permitted the largest private sector bank ICICI Bank to open new branches, cheered the trading sentiments.
Fall in inflation and robust growth in industrial production in September was another factor behind current bull run in banking stocks, they said.
The shares of country's largest lender in the public sector, SBI, zoomed by Rs 51.40, or 4.56 per cent, at Rs 1,178.15 after soaring to a record high of 1,184.40 on huge trading volumes.
Another state-run banking major Punjab National Bank shot up by Rs 30.20, or 5.85 per cent at Rs.546.45.
Private banks such as ICICI Bank rose by Rs 23.75 at Rs 881.20, HDFC Bank by Rs 15 at Rs 1,077.35 and Kotak Mahindra Bank by Rs 19.95 at Rs 402.40.
Other gainers were Bank of India by Rs 13.05 at Rs 186.05, Oriental Bank of Commerce Rs 10.15 at Rs 250.65, Bank of Baroda by Rs 11.65 at Rs 271.05, Canara Bank by Rs 7.75 at Rs 297.40, Indian Overseas Bank by Rs 5.05 at Rs 115.75, Allahabad Bank by Rs 2.25 at Rs 97.85.