Sensex up 280 points at 17,031; Bank stocks sparkle

As stocks, led by frontliners from banking, capital goods and metal sectors rallied sharply this afternoon, the BSE benchmark Sensex breached the psychological 17,000 mark for the first time since 14 November 2011. The barometer, which rose to 17,050.32, is now at 17,031, up 279.27 points or 1.7% over its previous closing mark.

The Nifty index of the National Stock Exchange, which spurted to 5141.05, is now at 5134.65 with a gain of 88.40 points or 1.75%.

Bank stocks are up sharply following the Reserve Bank of India cutting CRR by 50 basis points to 5.5%. The change will come into force from 28 January, the RBI said today.

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Banking sector heavyweights State Bank of India and ICICI Bank are up 5.3% and 3.3% at Rs 2043 and Rs 886 respectively. HDFC Bank, relatively subdued, is up with a gain of 1.6% at Rs 491.80.

Bank of India is up 6.5% and Canara Bank is trading stronger by 7.7%. Bank of Baroda, Punjab National Bank and Union Bank of India are up 3.3% - 5%. Private sector banks Axis Bank, Federal Bank, IDBI Bank, IndusInd Bank, Kotak Bank and Yes Bank are among the other top gainers in the Bankex.

PSU stocks Allahabad Bank, Andhra Bank, Bank of Maharashtra, Central Bank of India , Corporation Bank, Dena Bank, Indian Bank, Indian Overseas Bank, J&K Bank, Oriental Bank of Commerce, UCO Bank, Syndicate Bank and Union Bank of India, which are not part of the Bankex, are all up with handsome gains.

Capital goods heavyweights Larsen & Toubro and BHEL are up 5% and 0.7% respectively. Suzlon Energy, Punj Lloyd, Alstom Projects, ABB and Praj Industries are also up with strong gains.

Among metal stocks, Sterlite Industries, SAIL, Hindalco and Hindustan Zinc are up 2% - 4.2%. Jindal Steel, JSW Steel, Sesa Goa and Tata Steel are also trading sharply higher.

Realty stocks, which were a bit subdued after RBI announced its monetary policy, have moved higher in afternoon trade. HDIL and Sobha Developers, the star performers in this space, are up 5.2% and 6.8% respectively. Unitech has notched up a gain of 3.3%, while Anant Raj Industries, Godrej Properties and Prestige Estates are trading higher by 1.5% - 2%. Sector heavyweight DLF is trading 0.7% up at Rs 221.

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GMR Infrastructure rose to Rs 29.60 and despite retreating a bit, is well placed in positive territory at Rs 28.60 with a strong gain of 5.5%. The stock is up on reports that the company is giving final touches to raise close to Rs 600 crore through the private equity route to fund expansion of its highways business.

KPIT Cummins, which spurted to Rs 159, is up nearly 5% at Rs 151 at present. Net profit of KPIT Cummins Infosystems rose 26.03% to Rs. 12.25 crore in the quarter ended December 2011 as against Rs. 9.72 crore during the previous quarter ended December 2010. Sales rose 29.36% to Rs. 154.15 crore in the quarter ended December 2011 as against Rs. 119.16 crore during the previous quarter ended December 2010.