ONGC lifts Sensex up by 111 pts, ICICI among gainers
Led by oil and gas major ONGC, the benchmark Sensex on BSE bounced back to close higher by 111 points, a day after it got a severe drubbing.mumbai Updated: May 20, 2010 19:46 IST
Led by oil and gas major ONGC, the benchmark Sensex on BSE bounced back to close higher by 111 points, a day after it got a severe drubbing.
The 30-share index of the Bombay Stock Exchange gained 111.19 points, or 0.68 per cent, to end at 16,519.68 points.
Interestingly, the Indian market was the only gainer among major bourses in the Asia today.
The barometer had taken a hit of 467 points yesterday on debt concerns in euro zone.
The National Stock Exchange's wide-based 50-share Nifty index settled at 4,947.60 points, up 0.57 per cent.
Discarding a rise in food prices and bearish Asian stocks, the Sensex continued to trade in positive zone after a firm opening. With European bourses also rising in their opening, the index surged over 209 points by mid-session.
"Markets pulled back as investors took opportunity to buy shares at relatively lower price. Though still markets are on weaker side but a small bounce back cannot be ruled out in a few coming sessions," SMC Capital vice-president Rajesh Jain said.
End of the uncertainty over 3G spectrum auction, that left the government with a Rs 67,710 crore revenue also helped improve the market sentiment. Analysts said the government earning nearly double the money it projected in the Budget augurs well for the health of the economy.
Imports surging by a never-seen-before USD 8 billion in April also helped. Sentiment got a fillip after the Indian Met Department said the tropical cyclone 'Laila' will not impact the monsoon pattern, which is forecast to be normal.
Public sector-major ONGC rallied 8.72 per cent to emerge as the best performer among Sensex stocks. Brokers attributed the rise government doubling prices of natural gas to USD 4.20 per mmBtu. PSU stock IOC gained 4 per cent and Gail India 2 per cent. Energy giant RIL advanced by 0.16 per cent
On sectoral front, PSU and Oil & Gas led the gain, while a good buying was seen in pharma and banking stocks. However, realty, auto and consumer good sectors ended in red.
ICICI Bank, which was battered in the past 2-3 sessions on worries of valuation of a deal with BoR, recovered and ended with a net gain of 1.01 per cent. State Bank of India climbed 2.19 per cent and HDFC by 1.53 per cent.
Among the 30-components of the Sensex, 18 ended with gain where rest 12 finished in negative zone. Sterlite Industries rose 2.35 per cent and Cipla by 1.68 per cent.
Among the losers, Jaiprakash Associates dropped 3.28 per cent and was followed by DLF by 2.81 per cent and Grasim by 2.45 per cent. Grasim will be replaced by Jindal Steel & Power in the Sensex, the BSE said yesterday. The replacement will be effective from May 26.
On theglobal front, all major Asian markets closed in red. Europe was negative by the mid-session.