In its biggest single-day gain since March, the benchmark Sensex of the Bombay Stock Exchange on Friday rose 513 points, or 2.9%, to close at 18,241 on the back of a sharp dip in global crude oil prices and a rise in international markets after Greece reached a deal to avoid default.
The broader Nifty of the National Stock Exchange rose 2.8% to close at 5,470.
Brent crude slipped to a four-month low of $107 a barrel on Friday, down from $120 per barrel ten days, ago as the International Energy Agency announced a decision to release 60 million barrels of oil from strategic government stockpiles in a bid to push down crude prices.
India imports around 75% of its crude requirement and soaring oil prices has been a concern.
Global markets rose sharply earlier during the day as Greece won the consent of international lenders for a five-year austerity plan intended to avoid looming bankruptcy and Prime Minister George Papandreou pledged to push radical economic reforms through Parliament.
While China’s Shanghai Composite Index rose by 2.1%, Hang Seng in Hong Kong rose by 1.9%. In Europe, premier indices in the UK and Germany were up by 0.8% during the day.The Indian markets were, however, the biggest gainers.
“A fall in the prices of crude oil and the much-awaited EGoM meeting on fuel prices along with the settlement of debt issues in Greece improved investors sentiments,” said R Venkataraman, executive director, India Infoline. “The market is expected to be range-bound as it is waiting for the cues from monsoon, price rise and interest rates movement.”
{{/usCountry}}“A fall in the prices of crude oil and the much-awaited EGoM meeting on fuel prices along with the settlement of debt issues in Greece improved investors sentiments,” said R Venkataraman, executive director, India Infoline. “The market is expected to be range-bound as it is waiting for the cues from monsoon, price rise and interest rates movement.”
{{/usCountry}}“The fall in oil prices have given the government option not to raise fuel prices immediately, and if they dip to about $85 a barrel, then there may be cut in energy prices, considerably reducing fears of inflation and high interest rate pressures,” said Kishor Oswal , chairman, CNI Research.
Metal, banking and capital goods sectors topped Sensex gainers. While the BSE metal index rose by 3.4%, banking and capital goods indices jumped by 3.3% each. Among Sensex stocks, the biggest gainers were Hero Honda and State Bank of India, which rose by 6.1% and 6.0% respectively.