Sensex up 30 points; Reliance Comm surges 9.36%

The Bombay Stock Exchange (BSE) benchmark Sensex today closed up by 30 points to extend gains for the second day in a row, helped by abating political worries and softening global crude oil prices.

After a highly volatile trade, the 30-share barometer settled at 18,469.95 points, a gain of 30.30 points, or 0.16%, from its last close.

The index touched a high of 18,583.30 points during the day. However, early sharp gains attracted profit booking and the barometer fell by over 130 points in the day trade, marketmen said.

ADA group company RCom surged by 9.36% on speculations that the company is selling its tower business Reliance Infratel. Another speculation of Reliance Communication (RComm) bagging Rs8,700 crore loan from China Development Bank also helped the share rise, marketmen said.

Gains in index heavyweight Reliance Industries and ICICI Bank capped the losses and helped the barometer close in the positive region.

Market leader Reliance Industries (RIL) rose by 0.97% on reports of higher gas output from the D6 block in Krishna-Godavari basin by April this year.

ICICI Bank gained 1.24% to close at Rs1,033.55. RComm surged by

Brokers said investor confidence improved after the Congress and its ally, the DMK, clinched a seat-sharing deal for the forthcoming assembly polls in Tamil Nadu, putting to rest political concerns at the Centre.

A drop in global crude oil prices after signs of rise in crude oil output by major producing nations also capped the concerns over interest rate hike, they added.

Most Asian stocks ended marginally higher after oil crude prices retreated and Japanese machinery orders rose more than expected in January 2011. Key benchmark indices in Hong Kong, Japan, Taiwan, China and South Korea rose by about 0.03% to 0.61% while Singapore's Straits Times fell by 0.35%.

However, European markets were subdued in the early trade as investors remained on edge because of the turmoil in the Middle East and worries about European sovereign debt problems. The key benchmark indices in UK, Germany and France were down by between 0.06% to 0.27%.

The NSE 50-share Nifty also moved up by 10.20 points or 0.18% to 5,531.00 from its last close.

Among major gainers, Rel Infra rose by 2.37%, Bajaj Auto by 2.27%, DLF by 1.33%, Jai Prakash by 1.19% and Hero Honda by 1.01%.

However, Cipla declined by 1.74% followed by Sterlite Ind by 1.19%, NTPC by 1.03%, Jindal Steel by 0.69, HUL by 0.66% and Infosys Tech 0.62%.

Among the sectoral indices the BSE-Realty moved up by 35.96 points or 1.74%, the BSE-CD by 50.53 points or 0.88%, the BSE-Auto by 62.91 points or 0.72% and the BSE-Power by 12.32 points or 0.48%.

However, the BSE-HC fell by 21.29 points or 0.36% and the BSE-IT by 8.64 poiints or 0.14%.

The total market breadth continued to remain positive as 1,645 stocks gained ground while 1,218 that finished with losses on the BSE.

The total market turnover rose to Rs3,435.47 crore from crore Rs2,874.88 crore yesterday. Tata Coffee showed the highest turnover of Rs436.54 crore followed by Reliance Ind (Rs175.25 crore), State Bank Of India (Rs113.77 crore), Bajaj Finserv Ltd (Rs107.08 crore) and Rel Comm (Rs93.75 crore).