Sensex ends near four-month high, banks rally


11/07/2012 07:19 AST  Business Standard

The Bombay Stock Exchange's benchmark index, the Sensex ended near 4-month high on Tuesday led by banks on hopes that improvement in net interest margins would boost first quarter earnings. The Sensex surged 226 points to close at 17,618, its highest close since March 15 when it had closed at 17,676. The 50-share Nifty advanced 70 points to end at 5,345 levels.

Meanwhile, the European markets were trading higher after the finance chiefs ratified a deal to rescue Spanish lenders.

The euro-zone ministers agreed to grant Spain an extra year until 2014 to reach its deficit reduction targets and set the parameters of an aid package for Madrid's ailing banks. But they made no apparent progress on how the bloc's new rescue fund, the ESM, will be used to intervene in bond markets. Following this news, CAC40, DAX and FTSE advanced 0.8-1% each.

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