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Weak crude prices fuel rally in Indian stocks

Weak crude prices fuel rally in Indian stocks
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First Published: Mon, Jun 27 2011. 04 46 PM IST
Updated: Mon, Jun 27 2011. 04 46 PM IST
Mumbai: The Indian markets gained for a third consecutive day as Friday’s fuel price hike and falling crude prices revived investor interest in equities. After a flat opening, the benchmark indices soon gained momentum as investors bought stocks of state-owned oil firms on expectations that fuel price hikes will reduce losses and improve realizations.
The continuing slump in international crude prices also added to the overall positive sentiment. Brent crude fell 0.88% to $104.20 a barrel on concerns of slowing economic expansion in the US and International Energy Agency’s planned release of further stockpiles.
Sensex: 18,412 +0.94%
Nifty: 5,526 +1.01%
Power Grid Corporation, BPCL, ONGC and Reliance Capital led the rally in Nifty shares. Strong buying helped Power Grid Corporation gain more than 5%. While Reliance Capital strengthened 3.57%, ONGC and BPCL rose more than 4% each.
Power Grid Corporation: Rs 108 +5.07%
ONGC: Rs 283 +4.01%
Reliance Capital: Rs 560 +3.57%
At the sectoral level, PSU, capital goods, banking and automobile stocks led the rally on the BSE. Except real estate, FMCG and consumer durables, all sectoral indices closed the day with losses.
BSE PSU: 8,558 +1.92%
BSE Capital Goods: 13,592 +1.75%
BSE Bankex: 12,593 +1.61%
BSE Auto: 8,687 +1.49%
BSE Oil & Gas: 9,170 +1.40%
Several brokerages revisited their ratings on state-owned oil firms. Citigroup upgraded Indian Oil Corporation, HPCL, BPCL and Oil India to buy citing advantages of reduced under-recoveries. Bank of America Merrill Lynch, on the other hand, raised its target price on state-run oil marketing companies Indian Oil Corporation, HPCL and BPCL.
HPCL: Rs 415 +5.80%
Oil India: Rs 1,354 +5.64%
BPCL: Rs 663 +4.62%
Indian Oil Corporation: Rs 347 +3.10%
Glenmark Pharmaceuticals also rose more than 1.8% after the company said one of its deals with Sanofi signed in May, got US. According to the company, it has received $25 million upfront payment from the French healthcare giant.
Glenmark Pharmaceuticals: Rs 318 +1.83%
Overall, it has been a good day for the Indian stock markets. About 55.55% of the stocks traded on the BSE closed the day with gains.
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First Published: Mon, Jun 27 2011. 04 46 PM IST
More Topics: India | Markets | BSE | NSE | Sensex |