12 pm: Indian shares rise 1.5 pc
In six months, state-run refining and oil marketing stocks have risen, with global crude oil prices falling to their lowest.india Updated: Sep 13, 2006 12:08 IST
Indian shares climbed 1.5 per cent on Wednesday as robust Asian markets and falling oil prices lifted refinery firms, while banks were in demand after the central bank awarded a troubled lender to IDBI Ltd.
"The market has opened on a very positive note because of falling crude prices and strong markets across Asia," said Devang Shah, vice president for sales at Sushil Finance Consultants. We are getting a lot of enquiries on banking shares."
IDBI was up 7.1 per cent at 66.70 rupees after it beat more than a dozen others to buy ailing United Western Bank, which rose 5 percent to 22.5 rupees.
Other banks such as State Bank of India, Bank of Baroda, ICICI Bank and HDFC Bank also climbed on hopes for consolidation in the industry.
At 11:05 am (0535 GMT), the BSE index was up 1.43 per cent at 11,827.73 points, off a high of 11,836.82, with all 30 shares in the index rising.
In the broader market too, the mood was bullish as gainers outpaced losers by nearly four-to-one with 51.6 million shares changing hands.
State-run refining and oil marketing stocks rose as global crude oil prices fell to their lowest in almost six months.
Indian Oil Corp gained 3.3 per cent to 532.05 rupees, Hindustan Petroleum Corp. was up 2.7 per cent at 302 rupees and Bharat Petroleum Corp rose 1.2 per cent to 383.95 rupees.
India imports about 70 per cent of its oil, but domestic fuel prices are set below world prices by the government to keep inflation in check. State-run refiners are given bonds by the government to partly compensate for their losses.