Equities trade higher, Nifty PSU up 2.6 pc on privatisation buzz

Equity benchmark indices continued with positive momentum during early hours on Tuesday tracking strong global cues with investors hoping for a quick economic recovery. At 10:15 am, the BSE SandP Sensex was up by 212 points or 0.41 per cent at 52,367 while the Nifty 50 edged higher by 83 points or 0.54 per cent to 15,398. All sectoral indices at the National Stock Exchange were in the green zone with Nifty metal up by 3.7 per cent and PSU bank by 2.6 per cent. Among stocks, Tata Steel surged by 4 per cent to Rs 699 per share while Hindalco and JSW Steel moved higher by 3.8 per cent and 3 per cent. Indian Overseas Bank gained by 14.5 per cent to Rs 12.60 per share after reports said the government has shortlisted Bank of Maharashtra, Bank of India, Indian Overseas Bank and Central Bank of India for privatisation. Bank of Maharashtra was up by 20 per cent, Central Bank of India by 12.7 per cent and Bank of India by 11.5 per cent. However, among the losers were Axis Bank, ICICI Bank, Bajaj Finserv, Bajaj Finance, Nestle India, Eicher Motors and Hero MotoCorp. Meanwhile, Asian shares advanced as optimism about the global economic recovery and expectations of low interest rates drive investments into riskier assets. MSCI's broadest index of Asia Pacific shares outside Japan ticked up by 0.45 per cent while Japan's Nikkei rose by 0.4 per cent to a 30-year high. In Hong Kong, the Hang Seng Index surged by 1.79 per cent to hit a 32-month high.