RBL Bank gains after listing at 22% premium; Sensex at new 52-week high

RBL Bank shares gained as much as 35 percent on Wednesday after listing at a premium to the issue price of Rs. 225 on the stock exchanges, in line with expectations after its initial public offering (IPO) got an overwhelming response.

On the Bombay Stock Exchange (BSE), the RBL Bank stock was trading at Rs. 294.75 at around 12.08 p.m., up 31 percent when compared to the issue price of Rs. 225, after opening at Rs. 273.70, a gain of 21.64 percent.

The trading volume was heavy, with about 1.30 crore changing hands on the BSE within three hours of debut on the BSE.

The BSE Sensex maintained its winning streak on Wednesday also to hit a new 52-week high of 28,490 and was trading at 28,399.99, a gain of 56.98 points, at around 12.14 p.m.

The 30-scrip benchmark index rally was led by Tata Motors (up 3.01 percent), Hero Motocorp (up 1.97 percent) and Dr Reddy's Labs (up 1.23 percent).

Among sectoral indices, the BSE Auto was up about 1 percent. Companies such as Maruti Suzuki, Tata Motors and Mahindra would be declaring their August volume sales on Thursday.

The Tuesday rally on Indian stock exchanges was fuelled by global cues and foreign institutional investors (FIIs).

"Nifty ended at 16-month closing high on Tuesday, tracking positive global cues and due to improved FII inflow despite likely Fed rate hike. Market sentiment was also boosted after RBI's optimistic statement, saying that the economy is likely to grow at 7.6% in FY17, though it quashed hopes of further repo rate cut in its annual report. Market gained for 3rd consecutive session. Sensex was up 440 pts to end at fresh 13-month closing high," brokerage Angel Broking said in its pre-markets note on Wednesday.

 The government is expected to announce the June quarter gross domestic product (GDP) data later in the day.