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Jun 27, 2012, 05.46 PM IST
SENSEX-NIFTY-BHEL-RELIANCE-TATA-POWER-INFRA:BSE Sensex gains on power utilities, infrastructure
By Manoj Dharra
MUMBAI (Reuters) - The BSE Sensex rose on Wednesday as power utilities gained after a proposed tariff hike in New Delhi, while infrastructure stocks such as BHEL advanced on hopes for a renewed push by the government to increase investment in the sector.
Sentiment was also boosted after Deutsche Bank upgraded Indian stocks to "overweight" from "neutral," calling them close to the cheapest in two decades. The action followed a J.P.Morgan upgrade to the same rating last week.
However, investors remain cautious ahead of the expiry of derivatives on Thursday, and ahead of a European Union summit starting on the same day that is expected to deliver little in terms of meaningful action on the euro zone debt crisis.
"People are expecting the announcement of new finance minister soon. If the Prime Minister keeps the position, it can be a boost to markets in terms of stalled infrastructure projects and other reforms," said K. Alex Mathews, head of research at Geogit BNP Paribas.
The BSE Sensex rose 0.36 percent to 16,967.76 points, a second consecutive day of mild gains.
The Nifty added 0.41 percent to 5,141.90 points.
Hopes about Singh's commitment to infrastructure have been raised after he assumed an additional role as acting finance minister after previous incumbent Manmohan Singh stepped down on Tuesday.
The Prime Minister Office had been actively involved in pushing ahead with major transport and power projects this year, convening a meeting of relevant ministries.
Power utilities were also among the day's leading gainers after Delhi Electricity Regulatory Commission proposed a 24 percent hike in power tariffs for household consumers in New Delhi and a 19.5 percent hike for commercial consumers.
State-run power sector lenders advanced on expectations utilities would be better placed to pay back their loan commitments. Power Finance Corp
However, among under-performers, State Bank of India
(Editing by Rafael Nam)
Jun 19 2013, 23:15
- in MARKET OUTLOOK
Jun 19 2013, 12:44
- in MARKET OUTLOOK