Bank, insurance stocks may gain

MUMBAI: With the ruling UPA coalition winning the confidence vote, Dalal Street is expected to turn bullish on certain sectors including banking, insurance, companies engaged in nuclear energy and PSUs where there is a possibility of minority stake sale by government. Investors are also expected to take extra interest in the stocks of companies under the ADA Group, market players said.
UPA's win in the Lok Sabha is now sure to lead to strong opening on Wednesday."There's no doubt tomorrow (Wednesday)'s market would open with a substantial gap on the upside," said Arun Kejriwal, director, KRIS, an investment advisory firm. "But the rally has to sustain. In addition investors would also watch closely how the UPA's promises to its partners are fulfilled," Kejriwal added.
Market is betting on some reforms in the banking and insurance sectors. A note from HSBC also said the Indian pension sector, totally unreformed at present, could get a boost from a UPA win in the Lok Sabha with the government appointing a pension regulator to set the scene for further reforms in the sector.
"The 10% voting rights limit in PSU banks might go.," said Amitabh Chakraborty, president of equities, at Religare Securities.