Sensex up 172 points, oil companies surge on hike in fuel prices

The Bombay Stock Exchange (BSE) benchmark Sensex today surged 172 points on sustained buying of energy sector stocks on prospects of a boost in their earnings after the government raised prices of petroleum products on Friday.

A firm beginning in European region also supported the market.

The BSE's key index, Sensex, which had shot up by 513 points in the previous session, rose by another 171.73 points to 18,412.41, with most of the state-run energy stocks recording handsome gains.

Broad-based National Stock Exchange index Nifty rose by 55.35 points to 5,526.60 after touching the day's high 5,552.65.

Trading sentiment was upbeat after the government on Friday increased diesel price by Rs3 per litre, domestic LPG by Rs50 per cylinder and kerosene by Rs2 per litre, which would help the oil companies in reducing their revenue loss.

ONGC, which contributed the most to the rise of the BSE's 30-share gauge, gained Rs11.35 to Rs284.15. BHPCL rose by Rs29.30 to Rs663.70 and Indian Oil by Rs10.45 to Rs347.55.

Sensex leader and and oil refiner Reliance Industries also picked up by Rs1.10 to Rs871.50.

Across the sectors, the Public Sector Undertaking index that has some state-run oil company stocks in its kitty,gained the most by 1.92 per cent to 8,558.87, while Oil and Gas sector index jumped 1.40 per cent to 9,170.38.

Buying activity also spilled into Capital Goods, Banking, Auto, Teck, IT, Power and healthcare sector. However, decline in Realty, FMCG and Consumer Durables stocks restricted the gains.