Sensex Ends 259 Points Higher; Banking And Finance Stocks Witness Buying

Following the stake sale, LIC's holding in the bank has reduced to 6.74% from 8.74% earlier.

ICICI Bank's share price ended the day up by 1.9%.

In other news, Axis Bank is pruning its overseas operation as part of a strategy of focusing the Indian market.

Axis Bank closed branches in Shanghai and Colombo last month while it is in the process of winding up a Hong Kong Branch, senior bank officials said.

Reports also state that Axis Bank is looking to surrender its UK banking subsidiary license and close operations by April 2021.

Axis Bank's share price ended the day up by 2.1%.

Speaking of the banking sector, note that the sector was one of the worst affected sectors in the Indian stock market when Covid-19 struck.

Banking stocks were severely punished. No investor wanted to touch them even with a 10-ft pole.

However, sentiment have changed now as investors are chasing banking stocks like never before.

Have a look at the monthly returns of major sectors for the month of March and October 2020 in the chart below:

Banks were among major losers with a cut of 34% in the month of March. Cut to October, they were the biggest gainers for the month with more than 11% returns!

If you're interested in knowing what could be the reason behind such a change in sentiment, you can read about it in one of the editions of Profit Hunter: Banks are booming in a Covid World.

Moving on to news from the chemical sector, shares of Fineotex Chemical hit a 52-week high of Rs 64.90 on the BSE in early trade today.

Shares of the company have surged as much as 30% in the past two trading days after Nippon India Mutual Fund (MF) bought nearly 6% stake in a specialty chemicals company via open market.

On Monday, Nippon India MF acquired 6.61 million equity shares, representing 5.9% of total equity of Fineotex Chemical, for about Rs 300 million through block deal on the BSE, the exchange data shows.

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