Mumbai: The rebound in international commodity prices and good earnings from Tata Steel, Cairn India and Coal India helped Indian markets stage a comeback on Thursday.
After a positive opening, local equities gained momentum in the second half of the day after reports suggested that the government might increase diesel and kerosene prices in June. According to reports, a panel of Indian ministers might meet on 9 June to consider a fuel price hike. Read more...
Sensex: 18,044 +1.11%
Nifty: 5,412 +1.19%
Metals and oil & gas stocks led the gains among the Nifty 50. Reliance Industries gained more than 2.7% on reports that the government might allow the company to charge more for gas supplied to non-core users. After tanking yesterday, DLF also witnessed a sharp pullback on the bourses.
Hero Honda: 1,886 +4.43%
ONGC: Rs 274 +4.42%
DLF: Rs 218 +4.00%
Reliance Industries: Rs 933 +2.92%
On the sectoral front, oil & gas, metals and automobile stocks led the gains on the BSE.
BSE Oil & Gas: 9,392 +2.90%
BSE Metal: 14,877 +1.50%
BSE Auto: 9,058 +1.49%
Except Oil India, all stocks in the BSE Oil & Gas index closed the day with gains. A hike in fuel prices will help state-run oil companies contain fast rising under-recoveries. According to a Bloomberg report, Indian state refiners are losing around Rs 480 crore per day for selling fuel below cost price. Cairn India gained 1.4% after the company on Wednesday said its March profits jumped 10 fold to Rs2,460 crore.
Gail India: Rs 441 +2.75%
Petronet LNG: Rs 133 +2.50%
Indian Oil Corporation: Rs 308 +1.85%
BPCL: Rs 613 +1.44%
Cairn India: Rs 342 +1.40%
The rebound in international commodity markets revived investor interest in metal stocks. Sterlite Industries, Sesa Goa and SAIL registered gains of over 2.4% each. Tata Steel gained close to 2% after the company reported a 72% rise in March quarter profits.
Sterlite Industries: Rs 167 +3.45%
Sesa Goa: Rs 277 +2.52%
SAIL: Rs 142 +2.48%
Tata Steel: Rs 572 +1.98%
Overall it was a good day for Indian stock markets. About half the stocks traded on the BSE closed the day with gains.