Sensex off day's high as fuel price hike hopes wane
The 30-share BSE Sensex remained strong in trade on global rally; though it erased some gains after hopes of fuel price hike waned. State-run oil & gas producer ONGC trimmed gains to 0.5% from 2% after the Oil Minister Jaipal Reddy said there was no immediate proposal to hike fuel prices, including petrol.
September 07, 2012 / 16:59 IST
The 30-share BSE Sensex remained strong in trade on global rally; though it erased some gains after hopes of fuel price hike waned. State-run oil & gas producer ONGC trimmed gains to 0.5% from 2% after the Oil Minister Jaipal Reddy said there was no immediate proposal to hike fuel prices, including petrol.
While talking to media reporters outside parliament, he said the government has not taken decision yet on fuel prices. "We need to reduce burden on fuel retailers, but the government cannot fully compensate oil marketing companies," he added. Oil retailer BPCL tanked 3% after the news while IOC declined over 1% as the chairman R S Butola said they were losing Rs 16 crore per day on petrol sales. The BSE benchmark surged 278.60 points to 17,624.87 (gained 329.5 points intraday) and the NSE benchmark gained 80.60 points at 5,319, aided by the upward journey in global markets as the ECB chairman Mario Draghi's new bond buying programme lifted sentiment.Private steel producer Tata Steel extended gains to 4.23% while Jindal Steel, Hindalco Industries and Sterlite Industries were up 2% each.Country's largest private sector lender ICICI Bank and top commercial vehicle maker Tata Motors retained their position among top three gainers, rising 3.5% and 3.8%, respectively.Index heavyweight Reliance Industries, public sector lender State Bank of India, engineering conglomerate Larsen & Toubro and two-wheeler maker Bajaj Auto were up 2% each.Housing finance company HDFC, software majors Infosys and TCS moved up 1-1.9%. Advancers outnumbered decliners by 1663 to 791 on the Bombay Stock Exchange.In the second line shares, Jaypee Infra, Whirlpool, United Bank, Glodyne Tech and FDC rallied 5-6% while Prestige Estate, S Mobility, KSK Energy Ventures, Coromandel International and Tulip Telecom lost 1.5-3%._PAGEBREAK_At 10:33 hours IST: Broadbased buying keeps Nifty above 5300; ICICI top gainerIndian shares continued to trade higher with 1.5% gains led by consistent upmove across sectors. New bond buying programme by European Central Bank (ECB) and US economic data seems to be cheering up Indian market. Investors are also building up hopes on possible fuel price hike. The 30-share BSE Sensex gained 274.37 points at 17,620.64 and the 50-share NSE Nifty rose 80.80 points to 5,319.20, supported majorly by banks, metals, oil & gas and technology stocks.Jyotivardhan Jaipuria of Bank of America Merrill Lynch said, "While India could benefit in the near-term from a 'risk-on' rally globally, we are skeptical on the sustainability of any sharp rally especially if global commodity prices rise."European Central Bank's chairman Mario Draghi unveiled new bond buying program yesterday called Outright Monetary Transactions, which includes unlimited purchases of bonds with period of 1-3 years, subject to conditionality. That resulted in a global markets rally; Shanghai surged over 4% while Hang Seng, Nikkei and Kospi gained 2%.Back home, the country's largest private sector lender ICICI Bank and commercial vehicle major Tata Motors topped the buying list with 3.5% gains.Among sectors, the BSE Metal, Oil & Gas and Bankex were up 2% each. Capital Goods, Realty, Auto, IT, Power and Healthcare indices gained 1-1.8%.Index heavyweight Reliance Industries, engineering conglomerate Larsen & Toubro, public sector lender State Bank of India and state-run oil & gas producer ONGC rallied 2% each.Among metals stocks, Tata Steel jumped 3% while Hindalco Industries and Sterlite Industries moved up 2%.The broader markets too participated in the rally; the BSE Midcap and Smallcap indices went up over 1%. About five shares advanced for every share declining on the National Stock Exchange.At 9:21 hours IST: Sensex rises 300 pts on ECB move, US dataThe BSE Sensex gained more than 300 points and NSE Nifty crossed the 5300 level quite nicely in early trade, aided by the rally in global markets after the European Central Bank announced new bond buying program called Outright Monetary Transactions.The BSE benchmark rose 266.63 points to 17,612.90 and the NSE benchmark rallied 78 points to 5,316.ECB's new bond buying program includes unlimited purchases of bonds with period of 1-3 years, subject to conditionality. The negative part is that the ECB cut growth forecast for 2012 and 2013, but the market ignored the same.Asian markets moved up between 1% and 2% while US markets closed higher with 2% gains yesterday. The better-than-expected ADP employment, weekly jobless claims and ISM Services data in the US too supported the rally.Back home, Sterlite Industries, Sesa Goa, Hindalco, Tata Motors, IDFC, DLF, JP Associates, L&T, BHEL, Bharti and Reliance Industries shot up quite sharply.The Bank Nifty jumped 162 points as the country's largest lenders ICICI Bank and SBI gained 2.7% and 1.8%, respectively.Coal India, HDFC Bank, ITC and HUL gained 0.5-1%.The CNX Midcap Index rose 85 points or 1.2% to 7,212 as about four shares advanced for every share declined on the National Stock Exchange.In the second line shares, Delta Corp, Kingfisher, PFC, HDIL, Indiabulls Real, IVRCL and Sintex were up 2-3%.Mercator shot up 10%. Mahindra Ugine surged 10% as The Times of India reported that Mitsui and Sanyo bought 49% in company's steel business for Rs 218 crore.Sugar stocks too participated in the rally. Balrampur Chini, Shree Renuka and Bajaj Hindusthan gained 1-1.5%. 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