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Sensex closes 154 points higher as RIL, L&T stocks surge

Thursday, 17 June 2010 - 11:14am IST Updated: Thursday, 17 June 2010 - 5:24pm IST | Place: Mumbai | Agency: PTI
The BSE's 30-share barometer, which was inching upwards during the first half of the session, spurted after European stocks edged higher and closed at 17,616.69, up 153.82 points, or 0.88%.
Extending its gains for the seventh consecutive session today, the benchmark Sensex closed 154 points higher on heavy buying at RIL and L&T counters, supported by firm European cues.
 
The Bombay Stock Exchange's 30-share barometer, which was inching upwards during the first half of the session, spurted after European stocks edged higher and closed at  17,616.69, up 153.82 points, or 0.88%.
 
In the afternoon session, the Sensex took a hit and touched a low of 17,394.90 on rumours that a US brokerage firm has filed a $1 billion law suit against ICICI Bank. However, it recovered shortly thereafter as European markets opened in the positive zone, with fag-end buying in index heavyweights translating into concrete gains, brokers said.
 
Shares of ICICI Bank fell 3.5% in intra-day trade on the BSE due to the rumours, but bounced back soon after the bank said there was no substance to the reports. ICICI Bank settled in the green at Rs884.05, up 0.74%.
 
The National Stock Exchange's 50-share Nifty Index ended at 5,274.85, up 0.79%.

"A number of large Sensex constituents are looking strong that gives an indication that markets are ready for the next upmove, if the global scenario does not give a big surprise," domestic brokerage Reliance Securities said in a note.

Ahead of its annual general meeting, Reliance Industries rose 1.22% to Rs1,073.22, on hopes that Mukesh Ambani may unveil some big announcements tomorrow. The country's most valued firm, which carries the maximum weight on the benchmark indices, has been on a rising streak.
 
After telecom, Mukesh Ambani-led RIL is looking to enter the power sector and may bid for ultra mega-power projects in Chhattisgarh and Orissa, sources have said.

"Market sentiment was positive on hopes of a blockbuster AGM of RIL, where some big announcement is likely to be made public," Networth Stock Broking head of institutional sales & strategy Prakash Diwan said.
 
Investors also heaved a sigh of relief after food inflation eased to 16.12% for the week  ended June 5 from 16.74% in the previous week, raising hopes of moderation in the price-line, as indicated by finance minister Pranab Mukherjee. Engineering major L&T jumped 3.30% to Rs1,775.40 and was the biggest gainer in the Sensex components.
 
Most of the sectors witnessed mixed trading and stock specific action was more prominent.
 
In the automobile sector, Tata Motors, Maruti and M&M rose in the range of 0.22-2.80%, but Hero Honda fell 1.26% and was the biggest loser in the Sensex scrips.

In the financial sector, HDFC Bank and HDFC were up, but SBI ended in the red with a loss of 0.67%.
 
Anil Ambani-led Reliance Communications continued its run at the bourses and ended 2.30% higher. The country's top telecom firm Bharti Airtel snapped a three-day losing
streak and settled 0.3% higher.
 
Except consumer durables, all the sectoral indices on the BSE ended in the green, rising in the range of 0.15-1.78%.
 
Jaiprakash Associates moved up by 2.60%, Jindal Steel by 2.20%, DLF by 1.98% and ONGC by 1.82%.
 
On the BSE Sensex, 23 stocks settled with gains, whereas seven scrips ended in the red.
 
HUL declined 1.08% and was followed by Tata Steel, which fell 0.68%.
 
Asian markets ended mixed. China's Shanghai index closed 0.38% down and Japan's Nikkei index closed 0.67% lower, while Hong Kong's benchmark Hang Sang moved up
0.38%. Europe was trading higher at mid-session.

Sensex closes 154 points higher as RIL, L&T stocks surge

 
Mumbai
 
Extending its gains for the seventh consecutive session today, the benchmark Sensex closed 154 points higher on heavy buying at RIL and L&T counters, supported by firm European cues.
 
The Bombay Stock Exchange's 30-share barometer, which was inching upwards during the first half of the session, spurted after European stocks edged higher and closed at  17,616.69, up 153.82 points, or 0.88%.
 
In the afternoon session, the Sensex took a hit and touched a low of 17,394.90 on rumours that a US brokerage firm has filed a $1 billion law suit against ICICI Bank. However, it recovered shortly thereafter as European markets opened in the positive zone, with fag-end buying in index heavyweights translating into concrete gains, brokers said.
 
Shares of ICICI Bank fell 3.5% in intra-day trade on the BSE due to the rumours, but bounced back soon after the bank said there was no substance to the reports. ICICI Bank settled in the green at Rs884.05, up 0.74%.
 
The National Stock Exchange's 50-share Nifty Index ended at 5,274.85, up 0.79%.

"A number of large Sensex constituents are looking strong that gives an indication that markets are ready for the next upmove, if the global scenario does not give a big surprise," domestic brokerage Reliance Securities said in a note.

Ahead of its annual general meeting, Reliance Industries rose 1.22% to Rs1,073.22, on hopes that Mukesh Ambani may unveil some big announcements tomorrow. The country's most valued firm, which carries the maximum weight on the benchmark indices, has been on a rising streak.
 
After telecom, Mukesh Ambani-led RIL is looking to enter the power sector and may bid for ultra mega-power projects in Chhattisgarh and Orissa, sources have said.

"Market sentiment was positive on hopes of a blockbuster AGM of RIL, where some big announcement is likely to be made public," Networth Stock Broking head of institutional sales & strategy Prakash Diwan said.
 
Investors also heaved a sigh of relief after food inflation eased to 16.12% for the week  ended June 5 from 16.74% in the previous week, raising hopes of moderation in the price-line, as indicated by finance minister Pranab Mukherjee. Engineering major L&T jumped 3.30% to Rs1,775.40 and was the biggest gainer in the Sensex components.
 
Most of the sectors witnessed mixed trading and stock specific action was more prominent.
 
In the automobile sector, Tata Motors, Maruti and M&M rose in the range of 0.22-2.80%, but Hero Honda fell 1.26% and was the biggest loser in the Sensex scrips.

In the financial sector, HDFC Bank and HDFC were up, but SBI ended in the red with a loss of 0.67%.
 
Anil Ambani-led Reliance Communications continued its run at the bourses and ended 2.30% higher. The country's top telecom firm Bharti Airtel snapped a three-day losing streak and settled 0.3% higher.
 
Except consumer durables, all the sectoral indices on the BSE ended in the green, rising in the range of 0.15-1.78%.
 
Jaiprakash Associates moved up by 2.60%, Jindal Steel by 2.20%, DLF by 1.98% and ONGC by 1.82%.
 
On the BSE Sensex, 23 stocks settled with gains, whereas seven scrips ended in the red.
 
HUL declined 1.08% and was followed by Tata Steel, which fell 0.68%.
 
Asian markets ended mixed. China's Shanghai index closed 0.38% down and Japan's Nikkei index closed 0.67% lower, while Hong Kong's benchmark Hang Sang moved up
0.38%. Europe was trading higher at mid-session.

On the back of a rally in Reliance Industries and Larsen & Toubro, the Bombay Stock Exchange benchmark Sensex today rose by 154 points to complete seven days of straight gains.

    
The Sensex, which has gained 846 points in the last six trading sessions, advanced further by 153.82, or 0.88%, to 17,616.69 on sustained buying by funds, triggered by a firming global trend.
    
Similarly, the broad-based National Stock Exchange index Nifty rose by 41.50 to 5,274.85, while the Nifty in the futures and options segment closed at premium of 0.20%, suggesting that the market sentiment is becoming increasingly bullish.
    
The surge was supported by reports of a better trend in European stock markets on easing sovereign debt concerns in the eurozone, though trading was mixed in the Asian region.
    
The trading sentiment also improved on reports that food inflation dropping marginally to 16.12% for the week ended June 5, raising hopes that prices might go down further, as indicated by finance minister Pranab Mukherjee.
    
In the 30-BSE index components, 23 stocks closed with gains and seven ended with losses.
    
Reliance Industries rose by Rs13.95 to Rs1,071.30 and well-diversified company Larsen and Toubro by Rs56.75 to Rs1,775.40. The two cumulatively carry nearly 21% weightage on the index.
    
Reliance Communications, the second-largest mobile phone operator, climbed to its highest level in five months by adding Rs4.30 to Rs191.35.
    
The capital goods sector index gained the most, rising 1.78% to 14,462.22, followed by the oil and gas sector index by 1.33% to 10,408.18.
    
In the refinery sector, besides Reliance Industries, shares of Oil and Natural Gas Corp, the largest state-run oil explorer, gained 1.82% to Rs1,184.30 as Deutsche Bank rated the scrip as well as GAIL India as "buy." GAIL, a leading gas distribution company, shot up 2.45% to Rs474.55.



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